Lockdown restrictions caused the number of motor insurance claims to plummet by 48 per cent over the second quarter of the year, according to data from the association of British Insurers (ABI).
There were 324,000 new claims recorded between April and June 2020, down from 678,000 over the same period last year. The average value of claims rose significantly, though, up 27 per cent to £4,600, the largest quarter-to-quarter rise on record, and an increase caused by both a jump in the cost of theft and accidental damage claims. personal injury claims, meanwhile, increased by 34 per cent to an average of £19,500.
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The ABI also published data showing that the value of claims settled in the second quarter was down five per cent, although this reflects claims made during the previous quarter, as insurance payouts tend to take time for companies to make.
Critics were quick to highlight, however, that the vast reduction in claims was likely to have saved insurance firms around £1 billion, with James Blackham, chief executive of pay-per-mile insurance firm By Miles, calling the way automobile insurance works “unfair”. Blackham explained: “No automobiles on the roads over lockdown meant reduced risk and far fewer payouts. While we applaud the few who offered small refunds, no insurer is doing, or has done enough to pass on the savings gained in this period.”