Motor insurance premiums in the UK experienced a marginal increase in the first quarter of this year, with the average cost reaching £560.
This figure is just £1 more than the final three months of 2025, according to the Association of British Insurers (ABI).
However, the £560 average paid for motor cover remains £20 less than in the first quarter of 2025. The ABI reported that insurers paid out £2.9 billion in claims during the first three months of this year, with £1.9 billion specifically for vehicle repairs – a 3 per cent increase compared to the fourth quarter of 2025.
The average accidental damage claim also surged to £3,699, an 8 per cent rise on the previous quarter.
This escalation in repair costs is attributed by the ABI to higher parts prices and the increasing complexity of vehicles. Rising repair times, including those linked to supply chain disruption, further contribute, sometimes affecting costs such as vehicle hire.
Chris Bose, director of general insurance 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 Iran oil crisis has cost UK drivers £2 billion through higher fuel prices in just over a month, according to new analysis.
Motoring research charity the RAC Foundation estimated that rises in pump prices since the conflict in the Middle East began on February 28 have led to motorists paying an additional half a billion pounds for petrol and £1.5 billion for diesel.
The analysis also shows the additional VAT received by the Treasury because fuel is more expensive exceeds £336 million.
The figures are based on average daily pump price rises and last year’s fuel consumption rate.
VAT on road fuel is charged at 20 per cent on top of the combined price of the product and fuel duty, with the latter standing at nearly 53p per litre.
Steve Gooding, director of the RAC Foundation, said: “This is another unwelcome milestone for millions of motorists as the financial pain caused by the war in the Persian Gulf continues to mount up.
“As ministers themselves have warned, the economic effects of the conflict could last for months even after it has ended.
“The owners of diesel vehicles have borne the largest brunt of the pump price hikes, many of whom will be commercial users with little choice but to pass on their costs to their customers.
“Whether we are drivers or not, we all end up feeling the pinch from sky-high forecourt fuel prices.”
The unexpected benefits of ditching social media
Jaecoo 7 is selling fast – but should you really buy one?
Inside the motor show where AI, robots and fierce competition are redefining cars
How the rising interest in EVs could quietly bring down electricity bills
New research challenges belief new plug-in hybrids cost more to buy than EVs
Badenoch vows ‘end 20mph schemes’ for drivers in aim to ‘get Britain moving again’
