The ABI's latest data shows the
average motor premium remained stable in Q1
2026, but the cost of repairs
increased.1
The average premium held steady at £560, a marginal
£1 (0.2%) increase on Q4 2025 but still £20
lower than Q1 2025, or £38 lower when adjusted for
inflation.2
Of the £2.9 billion insurers paid out in claims in
the first quarter of this year, £1.9 billion was for vehicle
repairs, up 3% on Q4 2025. The average
accidental damage claim increased to £3,699, up 8%
on the previous quarter, as higher parts prices and
increasing vehicle complexity push up repair
costs.3
This underlines the impact of the complexity
of modern vehicles on the cost of motor
claims. While helping
to improve road safety and bring
down the frequency of claims, the
advanced technologies today's cars are
equipped with, such
as sensors and cameras, can
make repairs or replacements more expensive when damage or theft
occurs. Rising parts prices and repair times, including those
linked to supply chain disruption, have also
contributed to repair costs during the period, with longer
repairs sometimes impacting associated costs
such as vehicle hire.
Chris Bose, Director of GI and International at
the ABI, said: “It's encouraging to
see motor insurance premiums
have remained stable in the first three
months of this year, underlining the industry's efforts
to tackle costs. However, the
sustained high costs of repairs continue to
be a concern. Working with our members and
government, we'll maintain momentum
to drive forward the work of the
Motor Insurance Taskforce
to support motorists.”
End
Notes to editors
Footnotes
-
The ABI's Motor Insurance Premium Tracker is the most
comprehensive in the UK, analysing over 28 million
policies sold a year. It's also the only collection
that is based on the price customers pay for their cover
rather than what they are quoted (which typically delivers
higher averages). More on this in our blog.
-
Inflation adjusted data shows what historic costs would have
been if they faced the same inflationary
pressures we're experiencing today, uncovering the
real growth or decline.
-
Insurance claims for privately owned cars, based on data
which the ABI started collecting in 2013.
