Motor premiums remain stable, but cost of repairs still high
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.”
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