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ABI update – motor insurers pay out 14% more in Q1 this year than the same period last year

Jun 9, 2023 | ABI

Link(s):Keeping motorists mobile – motor insurers claims payments up 14% over the last year | ABI

Context

Motor insurers paid out £2.4 billion in motor claims in the first quarter of this year, up 14% on the same quarter last year according to our latest data. This was the highest quarterly payout since the ABI started collecting data back in 2013.

Key points to note

The data shows that between 1st January and 31st March 2023: 

  • In total insurers paid out £2.4 billon in all motor insurance claims.
  • The costs of vehicle repairs increased by 33% over the year since Q1 2022 to £1.5 billion.
  • The costs of providing replacement cars while vehicles are being repaired jumped 29% in the last year since Q1 2022.
  • Payments in relation to vehicle theft, at £152 million, rose by 29% since Q1 2022.

In addition, insurers paid out £642 million in respect of personal injury claims in the first quarter of this year, up 2% on the previous quarter.  In the year ending Q1 2023, payments dipped by 11%.  

Next actions

None – for information and awareness.