ABI: Fall in motor insurance claims in 2020
The number of motor insurance claims settled by insurers in 2020 fell by 19 percent according to figures published recently by the ABI (Association of British Insurers). This unsurprising fall reflected the Covid lockdowns during the year, which led to significantly fewer vehicle journeys.
Total payouts also fell, but at a much lower rate. During 2020 the average personal injury payout rose 13 percent on the previous year to GBP12,100.
During the same period, the average price paid for private comprehensive motor insurance remained at a four-year low. Throughout the pandemic, motor insurers have been providing a range of extra support and help to their customers.
Overall, in 2020 the number of claims settled, at 2.1 million, fell by 19 percent. Total payouts, at GBP8.3 billion, reduced by six percent in the previous year. These figures reflect the impact of the national lockdowns with reduced road usage; current figures1. from Government show a 14 percent fall in road traffic in the year to June 2020.
The overall average value of a claim paid was GBP4,000 up from GBP3,400 in 2019. This 17 percent rise in 2019 reflected rises in average personal injury and vehicle repair cost claims.
During 2020 the average price paid for private comprehensive motor insurance was GBP465, remaining at a four-year low.
Laura Hughes, ABI’s Manager, General Insurance, said: “The pandemic has forced many motorists to change their driving habits. 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. It is good to see that throughout an uncertain year, motorists continued to get the best deals from a competitive motor insurance market.
“As we edge back to some form of normality, cost pressures remain, such as increasing vehicle repair costs, reflecting ever more complex vehicle technology. With the average personal injury claim rising last year, the advent of the whiplash claims portal in May should help control whiplash costs, while ensuring that proportionate compensation is paid to genuinely injured claimants”.
