Let’s be honest, nobody likes to have to claim on their motor insurance policy as it is time confusing, stressful and ends up you having to spend more money by way of having to pay a compulsory excess and your campervan insurance premiums may also rise at renewal. Well, you may find it of interest that the amount paid out by motor insurers here in the UK to meet claims was at its highest level on record in the second quarter of 2023.
If you look on the Association of British Insurers (ABI) website you will see that the amount paid out between 1st April 2023 to the 30th June 2023 came to a staggering £2.5 billion. That seems to be a large sum of money. For the same period in 2022 the amount paid out was in the region of £2 billion.
Claims payouts were for vehicle repairs, personal injury, replacement vehicles and the theft of vehicles. The total number of claims that were paid out on in Q2 of 2023 amounted to 592,000. That is an increase of 18% in comparison to Q2 of 2022.
The biggest amount paid out was for the cost of repairing vehicles – £1.5 billion. Included in this figure will be things like labour costs and the cost of buying car parts that have gone up.
When you take your car in to get repaired you will probably need a replacement vehicle while your car is being repaired. Back in the second quarter of 2022 insurers paid out £103 million too meet this expense. However in the second quarter of 2023 that figure had risen to £157 million.
Personal injury claim payouts in Q2 of 2023 amounted to £602 million. This figure actually fell by 8% when compared to the same period last year when £651 million was paid out.
Vehicle theft payouts in Q2 of 2022 came to £128 million but that figure had risen to £196 million in Q3 of 2023 – a large rise.
Obviously, these figures are concerning and let us hope that you do not add to the statistics in the future whether that is whilst driving your family car or your campervan.