Vehicle repair costs increase insurance pay outs
Rising vehicle repair costs have increased the average motor insurance claim pay out to nearly £5000 in the second quarter of this year.
The latest statistics from the Association of British Insurers (ABI) show that figure has jumped 4% on Q1 to sit at £4900.
The average cost of windscreen repairs rose 7% to £283.
Premiums remained relatively static during the quarter in question, with drivers paying on average £566, up just £6 (1%).
As reported by Insurance Age, this remains £14 lower than the average premium in the same quarter of 2025 when adjusted for inflation.
Figures published by the ABI also highlighted that insurers paid out a record £3.2bn to support motor insurance customers in Q2, up 5% on the previous previous quarter.
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.”

