Figures from the Association of British Insurers show that motor insurers paid out £3.2bn in claims during Q3 this year, equalling the record set in Q2. The figure is 8% higher than Q3 last year. The ABI said the average claim now totalled £4,900, up by 1% on an annualised basis.

The ABI reports that average motor insurance premiums fell by £4 in Q3, in comparison to the previous quarter, to sit at £562. This is £11 (2%) higher than the same period last year, but down by £7 on an annualised basis when adjusted for inflation.

Chris Bose, director of general insurance and international policy at the ABI, said: “While competitive premiums are welcome news for customers, persistently high claims costs are putting significant pressure on insurers.

“Bringing these costs down is a key aim of the Government's Motor Insurance Taskforce and is crucial to ensuring a sustainable and competitive market for consumers in the long term. We’ll work with government, insurers and the wider sector as the taskforce’s recommendations are implemented and this collaborative approach remains essential.”