Car insurance premiums stable as vehicle repair costs rise
Car insurance premiums in the UK remained largely stable in the first quarter of 2026, with the average cost rising just £1 to £560 compared to the previous quarter. Despite this stability, vehicle repair costs continue to rise, driven by higher parts prices, supply chain issues, and increasing vehicle complexity. The Association of British Insurers noted that while premiums are steady, the sustained increase in repair expenses remains a concern for the industry.
- ▪The average motor insurance premium in the UK was £560 in the first quarter of 2026, a £1 increase from the final quarter of 2025.
- ▪Insurers paid out £2.9 billion in motor claims during the first three months of 2026, with £1.9 billion allocated to vehicle repairs, a 3% increase from the previous quarter.
- ▪The average accidental damage claim rose to £3,699, an 8% increase from the prior quarter, due to higher parts costs and longer repair times.
- ▪The Association of British Insurers attributes rising repair costs to supply chain disruptions and the growing complexity of modern vehicles.
- ▪The average premium is still £20 lower than in the first quarter of 2025, indicating some long-term downward pressure on prices.
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LifestyleMotoringCar insurance premiums stable as vehicle repair costs riseSustained high costs of repairs ‘continue to be a concern’, the Association of British Insurers said.Vicky Shaw Thursday 30 April 2026 05:33 EDTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popover{"translations":{"comments":"Go to comments","share":"Share","copyLink":"Copy link","bookmark":"Bookmark","removeBookmark":"Remove bookmark"},"showComments":true,"showBookmark":true,"articleId":"CF1:2967917To1","articleMeta":{"url":"https://www.the-independent.com/life-style/motoring/car-insurance-vehicle-repairs-abi-b2967934.html","title":"Car insurance premiums stable as vehicle repair costs rise"}}Martin Lewis warns these job titles could impact your car insurance priceYour support helps us…
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