According to data published by the Association of British Insurers (ABI) there was an increase in the cost of motor insurance claims in the third quarter of 2017. This is potentially disappointing news for the motorist as we may see a rise in car insurance premiums in the coming months to make up for the increase in the cost of claims.
For instance, the amount paid out by insurance companies in respect of theft claims, vehicle repair claims and personal injury claims amounted to £2.1 billion in Q3 of 2017. This is a sizeable amount by any standards.
Personal injury claim payouts totalled £835 million with the average being £10,120. This is a rise of 2% when compared with the second quarter of 2017.
The cost of repairing vehicles amounted to in excess of £1 billion with this being an increase of 16% when comparing the same period in 2016. Since the second quarter of 2013, there has been a rise of 46% in the average cost regarding the repair of a vehicle to a figure of £1,944.
The number of claims relating to the theft of a vehicle was huge – 13,000 vehicles with this being the most we have seen since the second quarter of 2013. In monetary terms, some £71 million has been paid out with this being a 25% rise in comparison to the same quarter of 2016. On average, the amount paid out to meet a motor theft claim was £6,582.
Motorists could do without having to pay out even more to keep their cars on the road so an increase in motor insurance premiums is not something that would be welcomed. This, on top of high fuel bills and an increase in mortgage repayments is something that motorists would rather not have to be faced with. It is important that motorists should consider shopping around for their car insurance to try to obtain a competitive deal.
