| Link(s): | Insurance support tops £150 million for homes affected by subsidence | ABI Motor premiums fall – but repair and theft costs keep revving up claims | ABI |
Context
The ABI has reported that, according to data available to it, subsidence-related insurance claims totalled £153m in the first half of 2025, as households across the UK felt the impact of an exceptionally warm and sunny spring, according to figures from the ABI. It has also reported that the average cost of motor insurance has fallen by £60 over the past year.
Key points to note and next actions
- Over the first six months of the year, insurers supported almost 9,000 households in recovering from subsidence damage, with the average payout per claim standing at £17,264.
- Subsidence occurs when the ground beneath a building sinks, pulling the property’s foundations down with it. It typically happens when soil loses moisture and contracts – often due to prolonged dry spells or the presence of trees and shrubs that draw water from the ground.
- The ABI’s figures follow unusually high spring temperatures, with the Met Office confirming the UK experienced its warmest spring on record this year – with above-average temperatures across all four nations.
- For the period April to June 2025, the average motor premium was £562 – down from £622 in the same quarter of 2024, but claims pressures persist.
- ABI members paid out £3.1bn in car insurance claims during the second quarter of the year, maintaining the record-breaking level of quarterly payouts first reached in Q1. Repairs continue to be a major contributor to elevated claims costs – increasing by £100 million from Q1 to £2.1bn.
- The high cost of claims for theft also played a role in the record payouts, as the average claim for theft of and from a vehicle increased by £319 (3%) on the previous quarter to £11.8k.
- Throughout the quarter, insurers settled 669,000 claims – 5% more than 639,000 settled in the first three months of the year.