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ABI comments on record motor insurance pay-outs

Link(s):Stuck in overdrive! Record motor insurance pay-outs keep motorists moving. | ABI

Context

According to figures published by the ABI, motor insurance payouts by insurers jumped by 21% in the third quarter of the year, compared to the same period last year surpassing £2.5bn for the second consecutive quarter.

Key points to note

  • The £2.54bn paid is the highest quarterly payout since the ABI started collecting this data in 2013.
  • The cost of vehicle repairs jumped 32% to a quarterly record £1.6 billion.
  • The cost of providing replacement cars while vehicles were being repaired jumped 47% to £160 million.
  • Pay-outs for vehicle theft (of and from a vehicle), at £178 million, rose by 35%
  • As part of the overall payout figure, insurers paid out £611 million in personal injury claims in the third quarter of this year, up 2% on the previous quarter, but down 5% on Q2 2022.
  • Higher costs have impacted on the price of cover, with the average price paid for motor insurance at £561, up 29% over the last year (ABI Motor Insurance Premium Tracker, Q3 2023).

Next actions

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