Average Cost of Motor Insurance Claim Continues to Rise

Figures published today by the Association of British Insurers (ABI) highlight that the average cost of a motor insurance claim has risen to the highest level on record.

ABI’s latest motor insurance claims statistics for 2017 show that:

The total amount paid on all motor claims, at £8.1billion, remained virtually unchanged from 2016.

The average claim, at £2,936, was the highest on record. Increases in the cost of theft claims and vehicle repairs contributed to this rise.

The average personal injury claim in quarter 4 of 2017, at £10,816, was the highest quarterly figure since quarter 2, 2016. The number of personal injury claims in 2017 fell slightly on 2016, with 320,000 claims settled. However, claim volumes remain significantly higher than should be expected given the continued fall in road traffic casualties. Despite the reduction in road casualties, whiplash-style claims reported to the Compensation Recovery Unit have been rising.

 Rob Cummings, ABI’s Assistant Director, Head of Motor and Liability, said:

“Despite motor insurance remaining a highly competitive market, cost pressures saw the average price paid for motor insurance jump by 9% to a record high in 2017. Putting a lid on excessive costs, which end up being paid for by motorists, remains a priority for insurers. This makes it all the more important for the Government to play its part, by pushing ahead with its reforms to personal injury compensation without further delay.”

Insurance-Edge Comment;

Despite road accidents falling, and modern cars and vans having outstanding safety features, driver alert aids, dashcams etc whiplash claims keep on rising. Why? The answer is that there is a culture of `trying your luck’ when it comes to whiplash injury claims and although many organised gangs have been jailed, there are still thousands of people in the UK who are keen to bag the cost of a holiday after the smallest of school run bumps.

Somehow, the insurance industry needs to campaign to make fraudulent claims as socially unacceptable as drink or drug driving. There needs to be a cultural shift in social attitudes to underpin the legislation.

About alastair walker 10148 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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