Motor claims costs spike 14%
12th June 2023Tweet
Motor insurers paid out £2.4bn in motor claims in the first quarter of this year, up 14% on the same quarter last year.
According to latest ABI data, this was the highest quarterly payout since it started collecting data back in 2013 and 11% up on the last quarter of 2022.
The overall number of claims settled was 599,000, representing a 14% increase on the same quarter 2022.
Meanwhile, the costs of vehicle repairs leapt by 33% over the year to £1.5bn, with the price of replacement cars up 29% in 12 months.
In addition, insurers paid out £642m in personal injury claims in the first quarter of this year, up two per cent on the previous quarter.
Laura Hughes, ABI’s Manager, General Insurance, said: “Like most other business sectors, motor insurers face sustained cost pressures which they are finding increasingly challenging to absorb. Despite this they are doing all they can to ensure competitively priced motor insurance, as well as offering the best possible claims service.”Tweet
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