A record amount has been paid out by motor insurers so far this year
Motor insurance pay-outs have reached over £23m per day this year - the highest figure on record.
These cover theft, own vehicle and third-party property damage as well as personal injury compensation.
This figure was up 4% on the same period last year.
In total motor insurers paid out £6.4bn to private motorists and in compensation to victims of motor crashes.
This is according to figures released today at the ABI’s (Association of British Insurer’s) Motor Conference. It collected data from its members over the first nine months of the year.
The trade association said that the “driving force” behind the rise is increased repair bills and theft claims.
Huw Evans, the ABI’s director general, said: “Despite rising claim costs, all drivers will appreciate the fact that the average price paid for motor insurance has been falling this year.
“This in part reflects the continued competitive market, and that some insurers may be reacting to the progress of the Civil Liability Bill that is proceeding through Parliament that will bring much-needed reforms to the personal injury compensation system.”
Cost of theft claims have increased by a third and repair costs have also soared.
The cost of theft claims was £271m, an increase of 32% during the same period last year.
The number of claims settled at 41,000 which is an 11% rise since last year.
The ABI said that the rise reflects “the widely reported growth in keyless vehicle crime.”
Repair bills were £3bn, a rise of 5% since last year, with the average bill this year at £2,137.
The ABI said that “ever more sophisticated vehicle technology” such as more sensors in bumpers and windscreens is leading to this rise.
But Tony Newman, Allianz’s head of motor claims argued: “It’s indisputable that both the cost to repair vehicles and car theft have risen sharply.
“Figures from the Office for National Statistics for England and Wales show car theft rates rose by 56% last year. Keyless vehicles are being stolen in less than 60 seconds often using devices bought over the internet.”
Allianz’s chief executive, Jon Dye said recently that the level of theft claims across the board are “reminscent of a recession.”
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