‘Relief' for motorists as average cost of insurance has fallen by £60 annually

Yahoo

2 days ago

The average cost of motor insurance premiums has fallen by £60 over the past year, according to figures from the Association of British Insurers (ABI).
For the period April to June 2025, the average premium was £562 – down from £622 in the same quarter of 2024.
Average premiums also fell by £19 compared with the first quarter of the year.
The ABI said its members paid out £3.1 billion in car insurance claims during the second quarter of the year.
It said repairs continue to be a major contributor to elevated claims costs.
The increasing sophistication of vehicles, featuring complex electronics, advanced sensors, and integrated systems, has made repairs more intricate and time-consuming, the ABI said.
It added that shortages of skilled technicians, slowing repair times, further inflates costs for insurers.
The high cost of claims for theft has also played a role in the payouts, the ABI said.
The average claim for theft of and from a vehicle increased by £319 compared with the previous quarter, reaching £11,800.
Insurers settled 669,000 claims between April and June, 5% more than 639,000 settled in the first three months of the year.
Mark Shepherd, head of general insurance policy at the ABI, said: 'It's encouraging to see motor premiums have fallen for a second consecutive quarter, offering some much-needed relief to drivers.
'But with the cost of cover still weighing on household finances, we must not lose momentum in tackling the persistent pressures driving up claims.'
The ABI's research is based on nearly 28 million policies sold a year and is based on prices paid for cover rather than insurance quotes.