Motor insurance payouts up a third
Motor insurers paid out £2.5bn in claims in the second quarter of this year, according to the Association of British Insurers.
This represents a 29% increase on the £2bn paid out in the same quarter last year.
A 46% rise in vehicle repairs to £1.5bn drove the increase, while the cost of providing replacement cars has also surged, by 52%, to £157m.
Meanwhile, vehicle theft was up by 53% to account for £196m.
ABI figures also revealed that insurers paid out £602m in personal injury, down six per cent on the previous quarter and eight per cent on the same quarter last year.
Laura Hughes, ABI Manager, General Insurance, said: “Motor insurers continue to deliver when motorists and personal injury claimants need them the most. Despite facing sustained cost pressures, motor insurers remain totally focussed on supporting customers when the worst happens, and doing all they can to ensure competitively priced motor insurance.
“With many families facing higher cost of living bills, anyone concerned about being able to afford their insurance should speak to their motor insurer to see what options might be available. And despite cost pressures, it can still pay to shop around to get the policy that best meets your needs at the most competitive price.”
