If you happen to be the proud owner of a classic car then it is also quite likely that you will also own another vehicle that is utilized as your run-around every day. Therefore, you will probably find it of interest to read that there was a record amount paid out by motor insurance companies to meet claims in Q2 of 2023.
Based upon data recently produced by the Association of British Insurers (ABI), the amount paid out in Q2 of this year to meet motor insurance claims came to £2.5 billion. That is £500 million more than was paid out to meet the same type of claims in the same quarter of last year. That is a 25% increase – a very large rise we are sure you will agree,
One of the reasons for the increase is due to an increase in the number of claims that were settled by insurance companies providing cover for motor vehicles. In Q2 of 2023 the number of claims that were settled came to 592,000 with this figure being 18% greater than for the same quarter last year.
Another reason why there has been more paid out to meet motor insurance claims in Q2 of 2023 than at any other period since the ABI started to keep data going back to 2012 is dues to a rise in the cost of having motor vehicles repaired. In Q2 of 2023 the amount paid out in repair costs came to £1.5 billion. That was 46% more than in Q2 of 2023 – a gigantic rise.
It is also interesting to note that the amount paid out relating to motor vehicles being stolen amounted to £196 million in Q2 of 2023. In Q2 of 2022 the figure was £128 million. That comes to an increase of 53% – again a huge rise and one that motor insurance companies could well have done without.
The cost of providing a temporary car whilst the policyholder’s is being repaired rose to £157 million. That is 52% more than the £103 million paid out in Q2 of 2022.
Obviously, these figures will have had some bearing upon how much motor insurance companies charge for providing cover. This is one reason why the cost of insuring a motor vehicle has been on the rise.
