Repair costs driving up motor insurance claims
Motor insurance claims rose to £3.2bn in the third quarter of the year, according to new figures from the Association of British Insurers.
This matches the figure in the second quarter of the year and is eight per cent higher than the same period last year.
The average claim rose one per cent year-on-year to £4,900 due partly to rising repair costs, with the average claim for replacing or repairing a windscreen was up five per cent from the second quarter and nine per cent year-on-year to £298.
Meanwhile, the average motor insurance premium fell by £4 to £562 in the third quarter, which is two per cent higher than the same period in 2025.
Chris Bose, director of general insurance and international policy at the ABI, said: “With more than £3bn 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.”
