As you will be aware, it is a legal requirement that you insure your motor vehicle unless it is declared SORN (Statutory Off Road Notification) and the vehicle is kept off the public road system. Well, it is one thing to make sure that your car is insured but you really do need to have peace of mind that, if you do make a legitimate claim on your policy that your insurer will pay out.
So, you will be pleased to read that, according to the Association of British Insurers (ABI), motor insurance companies here in the UK paid out a record sum in meeting claims in 2023.
You may find it of interest to read that insurers paid out £9.9 billion in meeting claims on motor insurance policies last year. This equates to an average £1.13 million being paid out in every hour. This would appear to be a huge sum of money. It is the highest amount paid out since the ABI started to keep such records in 2013. The payouts were for such things as personal injury, replacement vehicles, theft and repairs to motor vehicles.
The amount paid out was a big increase when compared with the previous year (2022) when £8.4 billion was paid out. This was a rise of 18%.
In 2023, the total number of claims that ended up being settled amounted to 2.3 million with this being an increase of 10% when compared with 2022.
The amount paid out to repair motor vehicles in 2023 amounted to £6.1 billion. In 2022 the figure was £4.7 billion so there was a rise of 31%. We are sure you will agree that is a very large increase.
The amount paid out to meet claims for the theft of vehicles and the theft of things out of vehicles came to £669 million. This was an increase of 23% in comparison to the £543 million paid out in 2022. The average amount paid out for the theft of a motor vehicle amounted to £12,600 in 2023.
We will continue to provide interesting data relating to motor insurance.
