Average Cost Of Car Insurance Claims Reach Record High

The average cost of motor insurance claims has hit a record high, peaking at £2,936, with the total amount paid on all claims reaching £8.1 billion – practically unchanged from 2016.

This is according to new research from the Association of British Insurers (ABI), with increases in theft claims costs and vehicle repairs contributing to this increase.

Commenting on the findings, assistant director with the ABI and head of motor and liability Rob Cummings said: “Despite motor insurance remaining a highly competitive market, cost pressures saw the average price paid for motor insurance jump by nine per cent to a record high in 2017.

“Putting a lid on excessive costs, which end up being paid for by motorists, remains a priority for insurers. This makes it all the more important for the government to play its part, by pushing ahead with its reforms to personal injury compensation without further delay.”

When your car is damaged, whether it’s your fault or someone else’s, it can be incredibly annoying. Not only do you have to deal with the hassle of insurance companies and making a claim, potentially losing your no claims bonus and having to pay an excess fee, but you also have to drive around in a damaged car – possibly for quite some time.

If it’s minor damage, it might be worth trying to tackle the problem yourself rather than going through the insurance company. If you’ve got a few scratches, you could perhaps consider investing in surface repair supplies and having a go yourself. But if it’s a big job, it’s probably best left to the professionals or you could make it worse!