UK drivers have been issued an update on car insurance premiums, with new figures from the Association of British Insurers (ABI) showing that the typical premium in the first quarter of this year stood at £560. This is just £1 more than the final three months of 2025 and £20 less than the first quarter of 2025.
The ABI revealed that of the £2.9 billion insurers paid out in claims in the first quarter, £1.9 billion went towards vehicle repairs, a 3% rise compared with the fourth quarter of 2025. The average accidental damage claim climbed to £3,699, up by 8% compared with the previous quarter.
The ABI attributed the surge in repair costs to steeper parts prices and growing vehicle complexity. Lengthening repair times, including those connected to supply chain disruption, have further driven up costs, with extended repair periods occasionally impacting expenses 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.'
Bose added that the industry would work with members and the Government to maintain momentum through the Motor Insurance Taskforce to support motorists.
