New statistics from the UK market, show that the number of insurance funded car accident repairs has fallen sharply, as vehicle usage has declined and insurance premiums have increased.

Research by Trend Tracker, estimates 4.55 million car body repairs were carried out in the UK in 2012, down 22% from a peak of 5.81 million in 2006. It is thought this decline is mainly due to high fuel prices, causing a decline in car use.

The Trend Tracker biennial report on the car body repair market, also shows that average annual car mileage has fallen 6% from 8,770 miles in 2006, to 8,240 in 2011. Over the same period, the number of insurance claims reported to car insurers as a proportion of all cars insured, or claims frequency, has fallen from 18% to 13.9%. In 2012 insurance companies are estimated to have paid for 2.01 million UK car body repairs, 27% fewer than the 2.75 million repairs they paid for in 2006. Despite this the report also shows, that in the same period average private motor premiums have risen by 24%, from £349 in 2006 to an estimated £434 in 2012. Insurers say the increase is due to higher costs. With the prices paid to bodyshops down in real terms, it would seem administration costs and personal injury claims are the main factors driving premiums up. Rising third party non-fault claims are also seen as a major issue.

The report also highlights that drivers are choosing higher excess figures on their policies. This means in many instances, where accident damage is not severe or the car is still driveable, policyholders with high excesses have opted not to have their car repaired, or have sought cheaper alternative repairs.