The number of motor insurance claims for the second quarter of 2020 dropped significantly, according to the latest report by the Association of British Insurers (ABI).
ABI reported 324,000 new motor insurance claims in the second quarter of the year, a 48% decrease compared to the 678,000 claims in the previous quarter. The value of claims settled that included existing claims from the previous quarters also hit £2.1 billion, down by 5% on the previous quarter.
By contrast, the value of the average claim paid jumped by 27% compared to the previous quarter, to £4,600, making it the most significant quarter-to-quarter rise on record.
Read more: ABI reveals details of COVID-19 death claims
By Miles chief executive officer James Blackham, however, said the ABI motor claims data for Q2 made it look like the insurance sector had reduced consumer costs and paid out more, which was not necessarily the case.
“While this may look like insurers are passing on cost savings to customers who have been off the road for months - this is a red herring,” Blackham said. “Unfortunately, as anyone who has been unlucky enough to have to make a car insurance claim will know, receiving your payout takes time – meaning of the £2.1 billion paid out over lockdown only a small proportion was for claims actually made during the lockdown.
“If you’re driving less, you should pay less. No cars 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.”
