ABI working with members to assess Luton Airport fire impact as insurers reveal support plans

The ABI has said it is currently “too early” to estimate how much the Luton Airport car park fire will cost insurers.

In a statement released yesterday (11 October 2023), the association said it was currently working with members to understand the situation and what impact it will have.

Fire crews were faced with a rapidly escalating blaze at the multi-storey car park on 10 October 2023 and declared a major incident just after 9.30pm.

It is believed that up to 1,200 vehicles may have been in the car park at the time of the fire and would have been damaged as a result.

Now that the fire is under control, an investigation to determine the cause is underway. 

The ABI urged affected drivers to notify any claim to their motor insurer.

“Owners of vehicles caught up in this fire will naturally be very concerned,” the association said.

“Comprehensive and third-party fire and theft motor insurance policies will cover fire damage.

“We will continue to work with our members and Luton Airport to understand the situation, as and when more information becomes available.

“It is too early to estimate the insured cost of the fire.”

Help on offer

This came after LV= General Insurance said it was expecting around 200 customers to be making claims.

The insurer said it would be waiving excesses and promised no claims discounts would not be impacted as part of its support.

It will also look to settle claims before customers return to the UK.

Meanwhile, Stephen Linklater, claims director at Ageas UK, said his firm was working with brokers and customers.

“Quite understandably, any of our customers who parked their vehicles at the car park will be very concerned by the news about the fire,” he added.

“To support them, we’re asking anyone who thinks they may have been affected to call our dedicated claims phoneline.

”For these customers, we’ll cover their journey back home (regardless of which airport they arrive at) and waive their policy excesses as well as the impact on their no claims discount for vehicles that have been totally lost or damaged. 

“We’re also keeping our broker partners fully updated on the situation and letting them know what exactly what our plans are to support their customers.” 

Hazel Johnson, UK general insurance director of home and motor claims at Aviva, also outlined what support the insurer would be providing.

“We are working with the authorities and emergency services and our priority is to provide whatever assistance we can to customers who may have been affected by the fire at Luton Airport,” she said.

”In the first instance, car insurance customers can call us for assistance or to report a claim. Due to the unusual circumstances of this event, we will be waiving excesses for customers whose cars have been affected by the terminal two car park fire and there will be no impact on their no claims discount.”

And Jane Pocock, Copart UK and Ireland managing director, said the firm would liaise with the relevant incident controllers and were currently preparing to help with vehicle recovery on behalf of all customers who may have had vehicles affected.

“Our specialist CAT management team is on standby to be deployed as soon as it is safe to do so and we will share further information as and when appropriate via our account management teams,” she added.

The ABI added that travellers should check their travel polices following the fire as it may offer limited cover for delays, or any abandonment of travel.

“Travellers caught up in the disruption following the fire should check the position with their air carrier or travel operator,” it said.