Motor claims payouts rise to record levels
Insurers paid out a record £3.2bn in motor claims in the second quarter of the year, according to the latest data from the Association of British Insurers.
This is a five per cent increase on the previous quarter and seven per cent higher than the same quarter in 2025.
Meanwhile, the average payout rose four per cent to £4,900. The ABI attributes this uptick to higher repair costs as a result of more complex technology in modern vehicles. Windscreen repairs saw the sharpest quarterly increase, with the average repair cost rising seven per cent to £283.
The ABI has also reported that premiums remained stable, with the average policy up one per cent to £566 in the second quarter of the year.
High claims costs
Chris Bose, director of general insurance and international policy, said: “Motor insurers are working hard to keep premiums competitive and affordable for customers, despite ongoing high claims costs.
“The Motor Insurance Taskforce provides a real opportunity for the new government to work with insurers and the automotive sector on this, to help improve affordability for drivers further.
“Alongside the positive steps the industry is taking to improve the claims handling process and to tackle vehicle-related crime and fraud, government investment is also needed. By increasing repair sector skills and improving parts availability, policymakers can help the sector keep pace with vehicle innovation and support a more resilient market.”
