Insurance Claims Soar After Winter

• News
• Published: 12 Mar 2010 in Motoring and Car Insurance

The coldest winter for 30 years has witnessed insurers pay out more than £650 million in weather-related claims, a trade body has revealed.

The Association of British Insurers said 335,000 claims had been made between December 18 and January 13 when the country was hit by heavy snow and freezing temperatures. Of these, the biggest area was car insurance, where firms paid out £395 million on 268,400 cases.

Homeowners and businesses submitted 66,000 claims during the same period, with insurers paying out £255 million - twice the normal number for winter damage to properties.

ABI director of general insurance Nick Starling said: "Insurers will always respond quickly to the large number of claims that often result from bad weather.

"Insurers have paid out nearly £1 billion to customers following bad weather this winter, as the heavy snow came weeks after the flooding in Cumbria, which led to insurers paying out £200 million in flood claims."

The group said it was too early to say whether the claims would lead to a hike in insurance premiums.