Motor insurers paid out a record £11.7 billion in car insurance claims in 2024, with the average cost of cover paid by drivers rising by £78 annually, according to data from the Association of British Insurers (ABI).
During 2024, insurers dealt with 2.4 million motor insurance claims, paying around £4,900 per claim on average across the year and a record average high of £5,300 in the final quarter of last year.
Vehicle repair costs totalled £1.9 billion in the fourth quarter of 2024, taking the yearly total to £7.7 billion – another record high and £1.5 billion more than the total for the year 2023, the ABI said.
The average price paid by motorists for cover in the final quarter of last year was 2%, or £14, lower than at the start of the year.
The typical cost paid for cover in the final quarter of last year was £621, down from £635 in the first quarter of 2024.
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