Average motor premiums nudged up by 0.2% in Q1 to reach £560, according to data from the Association of British Insurers. The professional body said premiums were still £20 lower than they were in Q1 2025. In contrast, it said the average accidental damage claim increased to £3,699, up 8% on the previous quarter.

Chris Bose, director of GI 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.”

The ABI says the advanced technology contained in many cars makes repairs and replacements more expensive. It also points to supply chain disruption as a factor in longer repair times, which create associated costs such as vehicle hire.