Car Insurance Premiums Hold Steady at £560 in Q1 2026 as Repair Costs Climb

Car Insurance Premiums Hold Steady at £560 in Q1 2026 as Repair Costs Climb

Date: 30 April 2026 Source: Association of British Insurers (ABI)

The average price of UK car insurance has stayed almost flat in the first three months of 2026, but the cost of repairing vehicles continues to push pressure on the market. According to the Association of British Insurers, the average motor premium in Q1 2026 was £560, just £1 higher than the previous quarter and £20 lower than the same period last year (ABI, 2026a).

Despite the stable headline figure, insurers paid out £2.9 billion in motor claims between January and March 2026, with £1.9 billion of that going on vehicle repairs alone — a 3% rise on the previous quarter. The average accidental damage claim climbed 8% to £3,699, driven by higher parts prices, supply chain delays and the increasing complexity of modern cars (ABI, 2026a).

For UK drivers shopping for cover, the news confirms that while prices have stabilised after years of sharp increases, the underlying cost of claims has not eased. Comparing tailored quotes carefully at renewal remains one of the most effective ways to keep motor insurance affordable. At ICUK Insurance, our independent quote searching service helps you check the latest market prices without bias from any single insurer.

Reference: Association of British Insurers (2026a) 'Motor premiums remain stable, but cost of repairs still high', ABI News, 30 April. Available at: https://www.abi.org.uk/news/news-articles/2026/4/motor-premiumsremainstablebutcost-ofrepairsstill-high/ (Accessed: 3 May 2026).