Vehicle repair costs increase insurance pay outs

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.”

Join Scotland's business professionals in receiving our FREE daily email newsletter
Share icon
Share this article: