Motor premiums stable in Q1 2026 despite cost of repairs increasing

Motor premiums remained stable in Q1 2026 despite the cost of repairs increasing.

According to ABI data published today (30 April 2026), the average premium was £560, a marginal £1 increase on Q4 2025, but still £20 lower than Q1 2025, or £38 lower when adjusted for inflation.

It comes despite the average accidental damage claim increasing to £3,699, up 8% on the previous quarter.

And of the £2.9bn insurers paid out in claims in the first quarter of this year, £1.9bn was for vehicle repairs, up 3% on Q4 2025.

Cost of claims

The increase in the cost of claims comes because of higher parts prices and increasing vehicle complexity pushing up repair costs.

The ABI said that advanced technologies today’s cars are equipped with, such as sensors and cameras, can make repairs or replacements more expensive when damage or theft occurs. 

Rising parts prices and repair times, including those linked to supply chain disruption, have also contributed to repair costs during the period.

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.”