Motor premiums remain stable, but cost of repairs still high

6th May 2026

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.”

Footnotes

The ABI’s Motor Insurance Premium Tracker is the most comprehensive in the UK, analysing over 28 million policies sold a year. It’s also 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 in our blog.
Inflation adjusted data shows what historic costs would have been if they faced the same inflationary pressures we’re experiencing today, uncovering the real growth or decline.
Insurance claims for privately owned cars, based on data which the ABI started collecting in 2013.

Motor premiums remain stable, but cost of repairs still high

Chris Bose, Director of GI and International at the ABI, said:

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