‘Three straight quarters of falling motor premiums will be welcome news for drivers and the industry alike,’ says director
Motor insurance premiums have fallen in each quarter of 2025 despite ongoing claims pressures.
That is according to the latest motor insurance tracker from the ABI, released today (12 November 2025), which revealed that policy prices fell by £13 to £551 on average in the most recent quarter.
The year-on-year price reductions were more substantial, with cover costing on average £56 less than Q3 2024, a figure which the ABI said amounted to a £79 saving in real terms after adjusting for the high levels of inflation seen in recent times.
The falls come amid continued claims pressures on insurers, with firms paying out £3bn in claims in the third quarter of the year and 64% of claims costs coming in the form of vehicle repairs.
The modernising UK fleet is increasingly costly to repair, with tech features such as electronics and sensors often requiring costly replacements and specialised labour.
The ABI also highlighted that these high-value components are a target for criminals, with £142m of theft-related claims paid in Q3 2025.
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Chris Bose, director of general insurance policy at the ABI, said: “Three straight quarters of falling motor premiums will be welcome news for drivers and the industry alike.
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“However, these continue to be tough times for many families facing higher cost of living bills and underlying pressures on claims haven’t gone away. The industry continues to drive forward its 10-point roadmap to help tackle the underlying cost of insurance.
“Government can back the sector too by investing in training for the repair sector and improving road safety. Crucially, any rise in insurance premium tax in the Autumn Budget risks reversing months of hard-won progress.”
He graduated in 2017 from the University of Manchester with a degree in Geology. He spent the first part of his career working in consulting and tech, spending time at Citibank as a data analyst, before working as an analytics engineer with clients in the retail, technology, manufacturing and financial services sectors.View full Profile
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