Insurers hit with £650m bill after winter damage

Insurers paid out £650m in weather-related claims as the UK suffered the coldest winter for 30 years.

Around 335,000 claims were made between December 18 and January 13 when the country was hit by heavy snow and freezing temperatures, the Association of British Insurers said.

The biggest area for claims was on car insurance, with insurers handling 268,400 claims and paying out 395m for damage to vehicles as drivers struggled on slippery roads.

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A further 255m was paid to homeowners and businesses who submitted 66,600 claims – double the number of weather damage claims insurers would normally expect to receive.

Of those claims, 60,200 were made by homeowners, with insurers paying out 194m to cover damage, particularly for roof damage caused by the weight of snow.

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

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

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The group said it is too early to say whether the claims for this winter will lead to increased insurance premiums.

The total figure is well below the 3bn insurers paid out after the storms in 2007.

Insurers also handled claims totalling 450 million following severe snow and freezing weather in Scotland and the North East in December 1995 and January 1996.