Daily Motor News – Monday 17 February 2025

The Association of British Insurers has revealed that motor insurers paid out a record £11.7bn in car insurance claims in 2024, attributing the increase to rising instances of theft and higher repair costs.

Underlining the point, a police crackdown has led to the recovery of more than 200 stolen vehicles valued at more than £1.8m collectively.

Meanwhile, innovation continues to drive change in the sector with new AI technology being piloted in the West Midlands able to track and record near misses between drivers and pedestrians. This comes after it emerged that Chinese car manufacturers are rushing to install the latest AI solution developed by DeepSeek.

However, not all new tech is an unequivocal success, with the RAC ongoing research into LED headlights finding that a quarter of motorists are driving less at night because of the dazzling effect of headlight glare.

Elsewhere, the NFDA has called for urgent government action to support ZEV Mandate targets, calling current measures ‘inadequate’.

Motor claims hit record £11.7bn in 2024

Motor insurers paid out a record £11.7bn in car insurance claims in 2024, as increases in theft and repair costs continued to impact premiums, according to the latest data from the Association of British Insurers (ABI). The average cost of motor cover in the final quarter of the year was £621. While this is two per cent lower than prices paid at the start of 2024 (£635), when taken as an annual average, the cost of cover in 2024 was £622, 15% (£78) higher than 2023. Full story

Stolen vehicles worth combined £1.8m recovered

A police crackdown has led to the recovery of more than 200 stolen vehicles worth a combined £1.8m. They include 29 high power cars, amongst them a Porsche 911 GT3 valued at £140,000, which are worth an overall £500,000. The operation, which began in May, was funded by Police and Crime Commissioner (PCC) Simon Foster. Full story

Road safety boost from AI sensors that track near misses

Near misses between drivers and pedestrians are being detected using the latest artificial intelligence (AI) technology as part of a region wide pilot scheme to improve safety and save lives. The West Midlands Combined Authority Mayor, Richard Parker has revealed how the region is investing in AI-powered vision sensors that can detect and record near misses between cars and pedestrians or cyclists meaning that potential collision hot spots can be found before someone is hurt. Full story

Quarter of drivers affected by bright headlights drive less at night as a result

A quarter of drivers (25%) who find vehicle headlights too bright are driving less at night as a result, while 22% say they wish they could, a major new study on headlight glare from the RAC shows. Findings from what is believed to be the most in-depth research into motorists’ views on the issue reveal that three-quarters (75%) of those who drive less do so because intense headlights make the experience uncomfortable or more difficult. Full story

Over half of parents with young families seas the day with trip abroad

This half term, research by insurer Aviva indicates a trend for international day trips with over a third (35%) – equivalent to almost 19 million Brits – having either travelled or planning to travel to another country for the day. Just under one in four (24%) have already visited another country for the day with a further 12% planning to do so in the future. Full story

Safety Group: Front crash prevention getting better fast

A new round of testing from the Insurance Institute for Highway Safety (IIHS) finds that AEB systems are improving. The institute collected 30 new cars and rated each vehicle Good, Acceptable, Marginal, or Poor based on whether it warned the driver at least 2.1 seconds before the “projected time of impact” and whether it reduced speed substantially. Full story

Car insurance costs: The tricks to lower your annual premiums

Car insurance costs have fallen for the first time in years, offering some relief to drivers facing record-high premiums. According to Compare the Market, annual premiums have dropped by £221 compared to last year. While this decrease is a welcome change, the overall cost of car insurance remains substantial, particularly for certain age demographics. Full story

Coalition threat to break up big insurers

The opposition leader, Peter Dutton, has threatened to break up Australia’s big insurance firms. He suggested the Coalition’s divestiture policy, aimed more at big supermarkets and hardware stores, would only be used as a last resort. Full story

How DeepSeek’s AI has become a must-have feature in Chinese smart EVs

Chinese electric vehicle (EV) makers are scrambling to install artificial intelligence (AI) developed by DeepSeek to add to their cars’ digital bells and whistles in a highly competitive market. More than a dozen carmakers, from EV leader BYD to Stellantis-backed start-up Leapmotor, have announced plans to develop cars fitted with DeepSeek AI features over the past two weeks. Full story

Driving laws 2025

The rules of the road are always changing. 2025 brings a lot of change for UK drivers. From new speed limits to electric vehicle costs, there’s a lot to catch up on. Experts at uswitch have highlighted the changes taking effect this year. Full story

Volkswagen sets internal VW brand margin target of 6.5%, says Business Insider

German carmaker Volkswagen has issued internal targets to improve the profit margin for sales from its VW car business to 6.5%, up from about two per cent previously reported, news website Business Insider said, citing documents it obtained. While the margin target has no specific deadline, it is part of a set of goals for 2025 to improve costs and performance at the group’s core car brand, the report added. Full story

The innovative Heart of Joy control unit

The “Heart of Joy” is the new central computer combining drivetrain and driving dynamics functions in a single powerful unit. It will undergo the ultimate endurance test in a uniquely high-performance test rig called the BMW Vision Driving Experience. This article tells you more about what the innovative control unit actually does. Full story

NFDA submits response to government consultation

On 13 February 2025, NFDA submitted its response to the Government consultation seeking views on proposals to support the UK’s transition to zero emission vehicles, ahead of the consultation deadline on 18 February 2025. NFDA’s response underscores that current measures to support the demand for ZEVs in the UK are inadequate and require significant enhancement to unlock their full potential. Full story

EV ownership costs are now 50% lower than for equivalent petrol car

New analysis of car ownership costs has identified a pronounced difference in the cost to own and run an electric car versus an equivalent petrol-powered model. The overall cost of running an electric vehicle (EV) is now £1,154 per annum, which is 50.2% less than the £2,316 equivalent cost to run a conventional petrol-driven car over the same period*. Full story

UAE Central Bank cites CII Advanced Diploma in new legislation mandating insurance qualifications

The United Arab Emirates (UAE) Central Bank has introduced new legislation which mandates professional qualifications for senior insurance representatives, and cites the Chartered Insurance Institute Advanced Diploma as exemplary of the internationally recognised qualifications that will be required by CEOs and other similarly ranked management representatives. Full story

LKQ Europe partners with Fristads for workwear solution

Swedish workwear manufacturer Fristads has secured an agreement to supply a range of workwear to LKQ Europe, the leading distributor of automotive aftermarket parts for cars, commercial vans and industrial vehicles in Europe. Full story

Activate Group has announced the appointment of Simon Elliott as Head of Implementation.

Bowker Motor Group has welcomed more than 20 apprentices to its dealerships in Blackburn, Bolton, and Preston.

Fix Auto UK has announced that Quality Repair Centre has joined its network and will be renamed Fix Auto Bedford.