Insurers paying out record £23m to motorists every day
This is up 4% on the same period last year and is the highest level since the ABI started collecting data at the start of 2013.
The cost of theft claims has risen by a third this year so far compared with the same period in 2017, with the number of claims settled – 41,000 – rising by 11% on last year.
The ABI said more sophisticated vehicle technology, such as more sensors in bumpers and windscreens, has led to repair costs growing by 5% to reach £3bn so far this year.
Huw Evans, director general of the ABI, said: “Motor insurers are delivering when it matters, keeping Britain’s motorists on the road when things go wrong, and compensating those who suffer injury in road crashes.
“Despite rising claim costs, all drivers will appreciate the fact that the average price paid for motor insurance has been falling this year.”
According to the ABI, which has over 250 member companies including most household names and specialist providers, the average price for comprehensive motor insurance in the third quarter of this year was £471, down from £477 in the previous quarter.