More bad Insurance News

[Kremmen]

... and I quote :

Not good news. Motor insurance claims rose by 29% between April and June to £2.5 billion and more than the premium they received. More premium increases......

[DAN@ADRIAN FLUX]

Hi.
If anyone ever needs any help with insurance at all then please feel free to drop me a line.
Regards,
Dan.

[Westy36]

Oooh, not good news. Premiums are on the up as it is, and further increases are going to be painful.

It will only lead to even more uninsured cars on our roads I suspect.

[Kremmen]

The ABI’s data shows that between 1 April and 30 June this year:

Insurers paid out a total £2.5 billon in all motor insurance claims (theft, vehicle repairs, replacement vehicles, personal injury). Up 3% on the previous quarter, and a rise of 29% on the £2 billion paid in Q2 2022. The overall number of claims settled, at 592,000, was up 18% on Q2 2022.
The cost of vehicle repairs leapt by 46% over Q2 2022 to £1.5 billion, the highest figure since ABI started collecting this data back in 2013. This reflects rising costs for insurers, including energy inflation, labour rates and more expensive repairs.
The cost of providing replacement cars while vehicles are being repaired, jumped 52% from £103 million to £157 million. This reflects longer average repair times, meaning that these vehicles are often supplied for longer.
Payouts for vehicle theft, at £196 million increased by 53% on the £128 million paid in the same period last year. This in part reflects increases in the average price of second-hand cars, which rose by 28% between April 2021 and June 2023 (source: Auto Trader).
As part of the overall payout figure, insurers paid out £602 million in personal injury claims in the second quarter of this year, down 6% on the previous quarter’s figure of £642million, and down 8% on the £651million paid in Q2 2022. Indications are that the whiplash reforms introduced in 2021 to create a simplified, fairer, more efficient, and cost-effective compensation system are having an impact.

Claim payouts over the year have risen at a faster rate than increases in the average motor insurance premium paid. Our latest Motor Insurance Premium Tracker – which tracks average prices paid, rather than quotes – shows that the average premium is currently £511, up 21% compared Q2 2022.