Data from the Association of British Insurers’ latest premium tracker has shown the average motor premium for Q3 2025 fell by £13 to £551, when compared to Q2. This is the third quarter in a row in which premiums have fallen. On an annual basis, the ABI said average motor premiums were £56 lower than they were in Q3 2024.

The ABI said its members had paid out £3bn in motor claims during Q3. The professional body’s data showed that repair costs accounted for 64% of the total Q3 claims figure (£1.9bn) and that theft-related claims totalled £142m.

Chris Bose (pictured), director of general insurance policy at the ABI, said: “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.”