New figures from the ABI reveal that motor insurers paid out £3.2 billion to support road users in Q3 2026, the same as Q2's record figure and 8% higher than the same period last year.1
The average claim in Q3 was £4,900 – a 1% increase year-on-year. Though small, the shift highlights ongoing cost pressures facing insurers. For example, the average claim for replacing or repairing a windscreen was £298 this quarter, up 5% from Q2 and 9% year-on-year.
While cost pressures persist, the average motor insurance premium fell slightly to £562 in Q3, £4 lower than the previous quarter. This figure is £11 (2%) higher than the same period in 2025, but down £7 year-on-year when adjusted for inflation.2
With more than £3 billion paid out last quarter, matching the previous quarter’s record, insurers continue to play a vital role in helping drivers, passengers and road users recover when things go wrong.
While competitive premiums are welcome news for customers, persistently high claims costs are putting significant pressure on insurers. Bringing these costs down is a key aim of the Government's Motor Insurance Taskforce and is crucial to ensuring a sustainable and competitive market for consumers in the long term. We’ll work with government, insurers and the wider sector as the Taskforce’s recommendations are implemented and this collaborative approach remains essential.
Chris Bose
Director of General Insurance and International Policy at the ABI
Footnotes
- The ABI’s Motor Insurance Premium Tracker is the most comprehensive in the UK, analysing over 28 million policies sold a year. It’s also the only collection that is based on the price customers pay for their cover rather than what they are quoted (which typically delivers higher averages). More on this in our blog.
- Inflation adjusted data shows what historic costs would have been if they faced the same inflationary pressures we're experiencing today, uncovering the real growth or decline.
About us
The ABI is the definitive voice of the UK’s world-leading insurance and long-term savings industry, which is the largest sector in Europe and the third largest in the world.
We represent more than 300 firms within our membership including most household names and specialist providers, providing peace of mind to customers across the UK.
Our sector is productive, inclusive and essential to the UK economy and together, we are driving change to protect and build a thriving society.
Find out more at abi.org.uk