Motor insurance premiums in the UK have remained largely stable in the first quarter of this year, with the average cost reaching £560, just £1 more than the previous quarter, according to the Association of British Insurers (ABI). This figure is £20 less than the same period in 2025.
However, the cost of vehicle repairs continues to climb. Insurers paid out £2.9 billion in claims in the first three months of this year, with £1.9 billion specifically for vehicle repairs – a 3 per cent increase compared to the fourth quarter of 2025. The average accidental damage claim surged to £3,699, an 8 per cent rise on the previous quarter.
The ABI attributes the rising repair costs to higher parts prices and the increasing complexity of vehicles. Supply chain disruptions have also lengthened repair times, sometimes adding to costs such as vehicle hire.
Chris Bose, director of general insurance 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.”
