Context
The number of motor insurance claims settled by insurers in 2020 fell by 19% according to figures published today by the ABI (Association of British Insurers). This unsurprising fall reflected the Covid lockdowns during the year, which led to significantly fewer vehicle journeys.
Key points to note
- While overall pay-outs fell, the average personal injury claim rose by 13%.
- Motorists continue to benefit from a competitive market as the average motor insurance premium remains at a four-year low.
- Insurers continue to give extra support to motorists during the pandemic.
The figures highlight that, in quarter four, 2020:
- The number of claims settled fell by 13% on the previous quarter to 468,000. The number of claims usually falls in this quarter with fewer vehicles on the roads over the Christmas break.
Overall, in 2020:
- The number of claims settled, at 2.1 million, fell by 19%. Total pay-outs, at £8.3 billion, reduced by 6% on the previous year. These figures reflect the impact of the national lockdowns with reduced road usage; current figures* from Government show a 14% fall in road traffic in the year to June 2020.
- The overall average value of a claim paid was £4,000 up from £3,400 in 2019. This 17% rise in 2019 reflected rises in average personal injury and vehicle repair cost claims.
- During 2020 the average price paid for private comprehensive motor insurance was £465, remaining at a four-year low.
*Department of Transport Provisional Road Traffic Estimates, July 2019 – June 2020
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