- UK motor insurance premiums saw a marginal increase in the first quarter of this year, reaching an average of £560, which is £1 more than the previous quarter but £20 less than the first quarter of 2025.
- Insurers paid out £2.9 billion in claims during Q1, with vehicle repair costs rising by 3 per cent to £1.9 billion, and the average accidental damage claim increasing by 8 per cent to £3,699.
- The Association of British Insurers attributes the escalation in repair costs to higher parts prices, the increasing complexity of vehicles, and supply chain disruptions affecting repair times.
- The Iran oil crisis has cost UK drivers an estimated £2 billion in higher fuel prices over just over a month, with petrol costing an additional £500 million and diesel £1.5 billion.
- The Treasury has also received over £336 million in additional VAT due to these increased fuel prices, with diesel vehicle owners bearing the largest financial burden.
IN FULL
