UK motor premiums have flattened after falling from their 2023 peak. The average driver now pays £560 a year, and the falls have stalled as repair and theft costs keep climbing. This trend frames every renewal decision you make.
What the latest data shows
The ABI Motor Insurance Premium Tracker puts the average price paid for comprehensive cover at £560 in the first quarter of 2026. That is £1 (0.2%) above the final quarter of 2025 and £20 below the same quarter a year earlier. Across 2025 as a whole, insurers paid out £11.9 billion across 2.5 million motor claims.
The direction of travel matters. The FCA’s general insurance pricing remedy, in force since 1 January 2022, removed the loyalty penalty that had pushed renewal prices above new-business rates. Premiums then climbed through 2023 as repair, theft and vehicle values rose, peaked around the end of 2023, and have fallen since as competition fed through. The recent flattening reflects cost pressure, not a loosening market.
What is driving the move
Repair inflation, higher vehicle values, and a rise in theft are pushing costs up. In the first quarter of 2026, insurers paid £1.9 billion for vehicle repairs, up 3% on the previous quarter. The average accidental-damage claim reached £3,699, up 8%. Modern cars carry sensors, cameras and high-value components that make even minor damage expensive to fix.
Theft adds to the pressure. Keyless-entry relay attacks have driven theft payouts to roughly £669 million in 2025, up about 35% on the year, concentrated in high-value SUVs and electric vehicles. While the pricing remedy compressed renewal margins, these claim costs are stopping further falls.
What you can do
Compare at renewal, review your excess and cover, and consider telematics if you are a newer driver. Our explainer on how insurers calculate risk explains the rating factors, and our analysis of premium finance covers the real cost of paying monthly. Younger drivers can read why young drivers pay more for the age effect.
Sources
- ABI, Motor premiums remain stable, but cost of repairs still high, 30 April 2026 (average premium £560; repair payouts £1.9 billion in Q1 2026).
- ABI, £11.9 billion paid out in 2025 to support motorists across 2.5 million claims, 11 February 2026.
- FCA, General Insurance Pricing Practices Remedy (in force 1 January 2022).