Insurers have paid out £28.6 million a day in claims this year, the greatest number on record, according to new figures from the association of British Insurers.
Surprisingly, the £10.4 billion total comes each time of falling road accidents as well as cars and truck thefts – accidents have fallen by 5 per cent from last year, with thefts down by 11 per cent compared to five years ago.
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Instead, the ABI states rising costs of cars and truck repair work are to blame. Speaking to car Express, a spokesperson for ABI said: “We’ve seen the typical expense of cars and truck repair work go up by 25 per cent in the last year.”
With new cars featuring much more tech as well as gadgets, the association states the typical repair work expense complying with an mishap has surged. The rising repair work expenses likewise correspond to higher insurance coverage premiums. The ABI estimates the typical expense of a extensive insurance coverage policy has gone up by nine per cent from last year to £434.
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And with the government announcing one more insurance coverage premium tax (IPT) boost from 10 to 12 per cent in its newest autumn statement, motorists ought to brace for even higher premiums next year.
The ABI spokesperson insisted that 99 per cent of all claims made in the UK resulted in a payout, with the other one per cent representing fraud. He stated “However, fraud is still an problem we take seriously. This is why we are doing all we can to make sure we can decrease insurance coverage costs across the sector.”
The Ministry of Justice just recently introduced a consultation into whiplash claims, which have gone up by 50 per cent in the last decade. The clampdown on fraudulent claims ought to save £40 off the typical expense of cars and truck insurance coverage with insurers wanting to pass 100 per cent of the cost savings back to consumers.
Has your insurance coverage premium gone up in the last few years? tell us in the comments below…