The Association of British Insurers says UK motor carriers paid out £3.2bn in Q2 2026. It said the record figure was up by 5% on the previous quarter and was 7% higher than the same quarter last year. The average claim was £4,900, up by 4% on the previous quarter.

The ABI says that while advanced vehicle systems and sensors can improve road safety, they also make repairs more expensive. In Q2 2026, average windscreen repair costs were £282, up by 7% on the previous quarter.

In the face of rising claims costs, the ABI says premiums remain relatively stable, rising by £6 (1%) during the quarter to reach £566. This is £14 lower than the same quarter last year.

Chris Bose, director of general insurance and international policy at the ABI, said: “Motor insurers are working hard to keep premiums competitive and affordable for customers, despite ongoing high claims costs. The Motor Insurance Taskforce provides a real opportunity for the new government to work with insurers and the automotive sector on this, to help improve affordability for drivers further.

“Alongside the positive steps the industry is taking to improve the claims handling process and to tackle vehicle-related crime and fraud, government investment is also needed. By increasing repair sector skills and improving parts availability, policymakers can help the sector keep pace with vehicle innovation and support a more resilient market. We stand ready to work with government and industry to help deliver these reforms.”