In the second quarter of this year £2 billion was paid out in motor insurance claims according to the latest data released by the Association of British Insurers. The average motor insurance claim rose to £2,839 a 6% rise on last year’s period.
Half of the total costs for claims were for vehicle repairs, including third party costs and windscreen repairs, the highest quarterly figure on record up 3% on the same quarter last year. The average cost of repairing vehicles has risen by 33% over the last four years to £1770. It is believed that these increased repair costs are due to the technology now integrated in modern vehicles as well as the weaker pound.
13,000 vehicles were stolen during this period, more than any time since the beginning of 2013. There was also a rise in the cost of theft claims by 21% on the same period last year. The RAC has supported this data with their own figures which show an increase in vehicle thefts of 30% in the past 3 years. The RAC insurance director Mark Godfrey said that this new data is a real concern for motorists.
“We fear thieves are now becoming more and more well equipped with technology capable of defeating car manufacturers’ anti-theft systems.”
Although private motor insurance is heading for further significant losses, the commercial motor market has proved to be more robust with a total annual profit of almost £100 million.
