2:36 pm, March 12, 2021
Fewer cars on the roads because of the lockdowns led to settled motor insurance claims dropping by nearly a fifth last year.
The Association of British Insurers (ABI) said today (Mar 12) there was a 19 per cent fall of 2.1 m claims versus 2019.
Payouts, meanwhile, went down by six per cent to £8.3bn against the previous year.
The average value of a claim paid was £4,000, which was 18 per cent up from 2019’s £3,400, and reflected increases in personal injury and vehicle repair cost claims, the association said.
During 2020, personal injury payouts went up by 13 per cent on average to £12,100.
Meanwhile, the average price for private comprehensive motor insurance was £465 – staying at a four-year low.
The ABI said support had included insurers discussing with customers options for adjusting policies and premiums because of fewer miles being driven, with one insurer refunding £110m to car and van insurance customers.
Laura Hughes, the ABI’s manager for general insurance, said: ‘Predictably, lockdowns have led to far fewer vehicles on the roads, reflected in the fall in the number of motor claims.
‘During the pandemic, insurers have given additional support to their customers, including options for reduced mileage and help for those struggling to pay their premiums by instalments.’
She added: “As we edge back to some form of normality, cost pressures remain, such as increasing vehicle repair costs, reflecting ever more complex vehicle technology.’
