Average price paid for motor insurance at its highest – ABI

Tracker spans more than seven million policies sold in Q2
Average price paid for motor insurance at its highest – ABI
MOTOR & FLEET
By Terry Gangcuangco
11 Aug 2023

The Association of British Insurers (ABI), which has been collecting data on prices paid for motor insurance since 2012, has released its latest Motor Insurance Premium Tracker.

Spanning more than seven million policies sold during the second quarter, the ABI’s tracker shows that the average premium paid for private comprehensive motor insurance in Q2 2023 was £511 – the highest on record. Compared to Q2 2022, the current average is 21% higher; 7% when compared to Q1 2023.

In its announcement, the ABI noted: “Higher premiums reflect continued rising costs for insurers. In total, insurers paid out £2.4 billon in all motor insurance claims – theft, vehicle repairs, and personal injury – in the first quarter of this year. This was up 14% on Q1 2022.

“The costs of vehicle repairs leapt by 33% over the year since Q1 2022 to £1.5 billion, the highest figure since ABI started collecting this data back in 2013. This reflects rising costs, including energy inflation, and more expensive repairs.”   

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