New figures from the ABI reveal that motor insurers paid out £3.2
billion to support road users in Q3 2026, the same as Q2's record
figure and 8% higher than the same period last
year.1
The average claim in Q3 was £4,900 a 1% increase year-on-year.
Though small, the shift highlights ongoing cost pressures facing
insurers. For example, the average claim for replacing or
repairing a windscreen was £298 this quarter, up 5% from Q2 and
9% year-on-year.
While cost pressures persist, the average motor insurance premium
fell slightly to £562 in Q3, £4 lower than the previous quarter.
This figure is £11 (2%) higher than the same period in 2025, but
down £7 year-on-year when adjusted for
inflation.2
Chris Bose, Director of General Insurance and
International Policy at the ABI said: "With more
than £3 billion paid out last quarter, matching the previous
quarter's record, insurers continue to play a vital role in
helping drivers, passengers and road users recover when things go
wrong.
While competitive premiums are welcome news for customers,
persistently high claims costs are putting significant pressure
on insurers. Bringing these costs down is a key aim of the
Government's Motor Insurance Taskforce and is crucial to ensuring
a sustainable and competitive market for consumers in the long
term. We'll work with government, insurers and the wider sector
as the Taskforce's recommendations are implemented and this
collaborative approach remains essential."
Footnotes
- The ABI's Motor Insurance Premium Tracker is the most
comprehensive in the UK, analysingover28 million policies sold a
year.It'salso 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
inourblog.
- Inflation adjusted data shows what historic costs would have
been if they faced the same inflationary
pressureswe'reexperiencing today, uncovering the real growth or
decline.
