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
None – for information and awareness.