Context
The ABI has provided its latest figures showing that motor insurers paid out £2.9b in the final quarter of 2025, taking total payouts for the year to £11.9b.
Key points to note
High repair costs continue to drive claims upwards, with motor claims bring driven by costs for vehicle damage, such as third party damage, accidental damage and windscreen repairs. Vehicle damage payouts totalled nearly £7.5b in 2025, accounting for 63% of total claims paid.
The ABI noted the figures reflect the complexity of modern vehicles, with high-value components being costly to repair or replace when damaged or stolen. Prices of parts are similarly increasing, making repairs more expensive, and continued pressure on supply chains is resulting in longer repair times, putting further pressure on overall repair costs. The average cost of cover in Q4 2025 was £559, slightly down (£63) on the same quarter in 2024.