| Link(s): | Record £3.2 billion paid out to support motor insurance customers in Q2 2026 | ABI Average claim for subsidence reaches record £20,000 amidst hot weather | ABI |
Context
The ABI has published details of the levels of claims support in Q2 2026 in relation to motor insurance and subsidence claims. Motor insurance claims reach a new record high, and average subsidence claims are a result of prolonged hot weather.
Key points to note and next actions
- Insurers paid out a record £3.2bn to support motor insurance customers in Q2 2026, according to the latest data from the ABI. This was 5% higher than the previous quarter, and 7% more than the same period last year.
- The average claim payout increased to £4,900, up 4% on the previous quarter, reflecting continued pressure from rising repair costs. While modern vehicles are increasingly fitted with advanced technologies such as cameras, sensors and driver assistance systems that can improve road safety, these features can also make repairs and replacements more costly.
- Windscreen repairs in particular saw a sharp quarterly increase, with the average repair cost rising 7% to £283.
- Despite these ongoing claims pressures, motor insurance premiums remained relatively stable. The average premium paid rose by £6 (1%) during the quarter to £566. Adjusted for inflation, this remains £14 lower than the average premium in the same quarter of 2025.
- New figures from the ABI’s latest Property Insurance Tracker show home insurers paid out £72 million for domestic subsidence claims during the second quarter of 2026, with the average subsidence claim reaching a record £20,000.
- The average payout is more than £2,000 higher than in the same period last year, highlighting both the growing cost of subsidence and the vital protection insurance provides for homeowners.
- The figures follow the warmest spring on record in England and Wales, and the third warmest across the UK, with prolonged dry weather increasing the risk of ground movement and damage to properties.