Sustained high costs of repairs ‘continue to be a concern’, the Association of British Insurers said.
The average motor premium in the first quarter of this year was £560, which was just £1 more than the last three months of 2025, according to the Association of British Insurers (ABI).
The £560 average amount paid for motor cover is also £20 less than in the first quarter of 2025, the ABI said.
It said that of the £2.9 billion insurers paid out in claims in the first quarter of this year, £1.9 billion was for vehicle repairs, marking a 3% increase compared with the fourth quarter of 2025.
The average accidental damage claim increased to £3,699, up by 8% compared with the previous quarter.
The ABI said that higher parts prices and increasing vehicle complexity have pushed up repair costs.
Rising repair times, including those linked to supply chain disruption, have also contributed to repair costs, with longer repair periods sometimes affecting costs such as vehicle hire, the association said.
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. Working with our members and Government, we’ll maintain momentum to drive forward the work of the Motor Insurance Taskforce to support motorists.”
