ABI says the cost of theft and vehicle repairs contribute to increase
The average cost of a motor insurance claim has risen to the highest level on record, according to new figures released by the ABI.
The figures say that the total amount paid on motor claims has remained the same at £8.1bn, which it was back in 2016.
But, the average claim, at £2,936, was the highest on record. The ABI says the cost of theft and vehicle repairs contribute to the increase.
The number of personal injury claims in 2017 fell slightly on 2016, with 320,000 claims settled.
However, claim volumes remain higher than expected given the continued fall in road traffic casualties.
Despite the reduction in road casualties, whiplash-style claims reported to the Compensation Recovery Unit have been rising.
Rob Cummings, ABI’s Assistant Director, Head of Motor and Liability, said:
“Despite motor insurance remaining a highly competitive market, cost pressures saw the average price paid for motor insurance jump by 9% to a record high in 2017.”
Cummings then reiterated the ABI’s desire for the government to introduce the controversial whiplash reforms.
“Putting a lid on excessive costs, which end up being paid for by motorists, remains a priority for insurers,” he said. “This makes it all the more important for the Government to play its part, by pushing ahead with its reforms to personal injury compensation without further delay.”