| Link(s): | Motor insurers pay out record amounts to help keep motorists mobile | ABI motor-insurance-affordability-roadmap.pdf |
Context
The Association of British Insurers (ABI) published the latest Motor Insurance Claims Tracker figures, showing that the £9.9bn paid out in 2023 is the highest annual figure since the ABI started collecting this data back in 2013.
Key points to note and next actions
During 2023:
- I insurers paid out £9.9bn in motor insurance claims
- The cost of vehicle repairs, at £6.1bn, jumped by 31% from the £4.7bn paid in 2022
- Payouts for vehicle theft (of and from a vehicle) and the average theft claim were both at record levels
- The cost of providing temporary replacement vehicles, at £597 million, leapt 35% on the £444 million paid in 2022
The ABI recently published a roadmap aimed at tackling motor insurance costs. The roadmap outlines 10 steps with a combination of actions that industry, government or regulators could initiate or improve on. These include making more data available for consumers to understand which vehicles are more expensive to insure, adopting Graduated Drivers Licensing to improve road safety, and the cutting of insurance premium tax.