Motor insurance pay-outs cost more than £23m ($29.4m) in claims every day over the course of 2018, according to a research by the Association of British Insurers (ABI).

A total of £6.4bn was paid out to private motorists and in compensation in the first nine months of 2018. This figure was up 4% on the same period last year.

The claim pay-outs includes theft, own vehicle and third-party property damage, in addition to personal injury compensation.

Growing repairing bills and theft claims were found to be the prime factors behind the rise.

Motor insurance pay-outs taking toll on insurers

According to the data, the cost of theft claims rose by 32% to £271m compared to the same period in 2017. Claim settlements reached to 41,000 claims, up 11% compared to last year.

Similarly, repairing costs also contributed to increase motor insurance pay-outs. It rose to £3bn so far this year, an increase of 5% compared to last year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Currently, the average repair bill stood at £2,137 this year. More sophisticated vehicle technology, such as more sensors in bumpers and windscreens, is driving the increase in repair costs.

ABI director general Huw Evans said: “Motor insurers are delivering when it matters, keeping Britain’s motorists on the road when things go wrong, and compensating those who suffer injury in road crashes.

“Despite rising claim costs, all drivers will appreciate the fact that the average price paid for motor insurance has been falling this year.

“This in part reflects the continued competitive market, and that some insurers may be reacting to the progress of the Civil Liability Bill that is proceeding through Parliament that will bring much-needed reforms to the personal injury compensation system.”