Context
According to the (ABI) latest Motor Insurance Premium Tracker, motor insurance premiums continue to fall in 2025. Between July and September, the average premium stood at £551, which is £13 lower than the previous quarter.
Key points to note and next actions
- Motor premiums dropped £16 between April and June and fell £42 at the start of the year, marking a consistent downward trend across all three quarters. When looking at the yearly picture, premiums in Q3 2025 were £56 lower than the same period in 2024. Adjusted for inflation, the real-terms decrease is even more substantial, totalling £79.
- The ABI’s Motor Insurance Premium Tracker is the most comprehensive in the UK, analysing nearly 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).
- Repair costs accounted for 64% of the total claims figure, totalling £1.9 billion as the complexity and cost of fixing modern vehicles remains high.
- The cost of theft-related claims totalled £142 million in Q3, which serves as a reminder that tackling this challenge must remain a priority for manufacturers, insurers, and government.