Whilst it is a legal requirement that we arrange motor insurance, the reason why we take out car insurance is to provide us with peace of mind that should we be involved in a road traffic accident or have our cars stolen we can claim on our policies to have things like our cars repaired or replaced. Well, the Association of British Insurers (ABI) has recently published some interesting statistics about the amount paid out for such claims.
In 2017, the average amount of a motor insurance claim was £2,936. This was an all time record. Interestingly, the amount that was paid out in motor insurance claims in 2017 totalled £8.1 billion with this figure being similar to the amount that was paid out by insurers in 2016. Another interesting statistic was the fact that there was a fall in claims that ended up being settled for personal injuries in 2017 when compared with the previous year to 320,000.
Of course, it is no secret that one of the factors that impacts upon how much we all pay for our motor insurance is the amount that insurers have to pay out to meet claims. The less that an insurer pays out could potentially mean that they are able to contain or lower the cost of how much they charge motorists for insuring their vehicles. However, there are many other factors that affect how much we are charged for our cover.
You should seriously consider shopping around for your car insurance to try to get the best deal possible. However, do bear in mind that your decision as to which insurance company you decide to favour with your business should not just be based upon price as you may also wish to consider taking into account the likes of customer service and what percentage of claims the insurance company agree to pay out on.
