Insurance industry announces 99% pay-out on car insurance claims

Have you ever wondered how many car insurance claims are successful? Well, for the first time the Association of British Insurers (ABI) has published claim success rates for 2013 and 2014, covering 4.3 million motor claims.

The figures showed 10% of all car insurance policyholders made a claim in that period, with a massive 99% of them being paid successfully. The average pay-out of a claim was £2,160.

In a statement the ABI said the information was released to raise consumer awareness for declined claims, to improve customer trust and increase transparency in the insurance industry.

Huw Evans, ABI’s Director General, said:

“As insurers, we want our customers to have greater trust in us to pay claims when life gets difficult. We cannot earn that trust without being more transparent about how many claims are paid and why a minority of claims are usually declined. That is why the figures we are publishing today are so important.”

When won’t car insurance companies pay out?

In most cases insurers will pay out for car insurance claims, but there are some situations when they won’t. Here are some of the main reasons:

  • Not providing correct information about yourself or your vehicle, either accidentally or deliberately.
  • Not declaring modifications to your car. Keep in mind that not all modifications are for performance reasons; even utility modifications such as tow bars, roof racks and parking sensors may be considered vehicle modifications by your insurer.
  • Not declaring unspent convictions (including non-motoring convictions) when asked.
  • Not declaring previous motor insurance claims or accidents (even if they did not result in a claim) if asked.
  • Not having the correct use type (social, social including commuting or business use). What is considered commuting may vary between insurers, for example some insurers may exclude lift sharing.
  • Not having the security features you stated you had such as an alarm, an immobiliser or a tracking device.
  • Not keeping reasonably within the mileage you stated.

Keep in mind that every insurance policy is different, so check the wording of yours to be sure what is and isn’t covered.

Get an online quote

Released On 15th Sep 2016

What our customers say 4 Young Drivers