Motor insurance premiums in the UK have remained largely stable in the first quarter of the year, despite a continued increase in vehicle repair costs. According to the Association of British Insurers (ABI), the average premium paid in the first three months of 2026 was £560, just £1 more than the final quarter of 2025.
This figure is £20 lower than the same period last year, indicating that premiums have not risen in line with the cost of claims. Insurers paid out £2.9 billion in claims during the first quarter, with £1.9 billion specifically for vehicle repairs – a 3 per cent increase compared to the previous quarter. The average accidental damage claim rose to £3,699, an 8 per cent jump.
The ABI attributed the rising repair costs to higher parts prices and the increasing complexity of modern vehicles. Longer repair times, often linked to supply chain disruption, also add to costs, for example through vehicle hire expenses.
Chris Bose, the ABI’s director of general insurance and international, 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.” He added that the industry would maintain momentum to drive forward the work of the Motor Insurance Taskforce to support motorists.
