A 46% rise in repair costs in the last year have driven a 29% increase in motor insurance payouts.
According to figures released by the Association of British Insurers, repair costs soared to £1.5bn between April to June, representing a 46% increase on the same quarter in 2022.
Meanwhile, the cost of providing replacement cars was up by 52% to £157m, and vehicle theft rose by 53% to £157m.
Combined, this saw motor insurers pay out £2.5bn in claims in the second quarter of this year, which is 29% more than the £2bn paid out in the same quarter last year.
However, ABI figures also revealed that personal injury pay outs of £602m marked a fall of six per cent on the previous quarter and eight per cent on the same quarter last year.
Laura Hughes, ABI Manager, General Insurance, said, “Motor insurers continue to deliver when motorists and personal injury claimants need them the most. Despite facing sustained cost pressures, motor insurers remain totally focussed on supporting customers when the worst happens, and doing all they can to ensure competitively priced motor insurance.
“With many families facing higher cost of living bills, anyone concerned about being able to afford their insurance should speak to their motor insurer to see what options might be available. And despite cost pressures, it can still pay to shop around to get the policy that best meets your needs at the most competitive price.”
