Motor premiums stable despite rising repair costs
Average motor premiums remained stable in the first three months of the year, despite a rise in claims costs.
According to the Association of British Insurers, average motor insurance premiums were £560 in the first quarter, which is just £1 higher than the last quarter of 2025 and £20 lower than the same period in 2025.
However, claims cost rose to £2.9bn, with repair bills rising three per cent on the previous quarter to £1.9bn.
Average accidental damage claims increased to £3,699, up eight per cent on the previous quarter, due to higher parts prices and increasing vehicle complexity. The ABI suggested that this underlines the fact that new technologies such as ADAS may reduce the frequency of collisions but can impact repair and replacement costs.
Chris Bose, director of general insurance 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.”
