the average cost of motor cover in Q4 2024 was £621. While this is 2% lower than prices paid at the start of 2024 (£635), when taken as an annual average, the cost of cover in 2024 was £622, 15% (£78) higher than 2023, figures from the Association of British Insurers (ABI) show.
The ABI’s latest claims data shows that, over the course of 2024, insurers dealt with 2.4 million motor insurance claims.
The average private motor insurance claim paid in 2024 rose to £4,900, 13% higher than in 2023. In Q4 2024, the average claim hit £5,300 – an all-time high.
Vehicle repair costs totalled £1.9bn in the fourth quarter 2024, taking the yearly total to £7.7bn – another record high and £1.5bn more than the 2023 yearly total. The average claim for theft of or from a vehicle hit £11,200 in Q4 2024.
The latest data from the ABI comes one year after the trade body launched its 10-Point Roadmap, which sets out steps that the industry and Government can take to tackle insurance costs.
Why Life Insurance Still Matters – Even During a Cost-of-Living Crisis
Sponsored by Post Office
Mark Shepherd, head of general insurance policy at the ABI, said: “Our latest data paints a difficult picture for drivers and the industry alike. Through our 10-Point Roadmap, we’ve been working hard to help tackle the cost of motor insurance and we’ve seen progress in some areas, with average premiums having fallen from their peak. However, we recognise that the price of cover remains a strain on household finances, whilst the industry faces significant cost pressures.
“Industry is doing all that it can, but it is now for Government to take the necessary action to combat high claim costs. And it’s vital that Government does not further increase costs for hard-working households and businesses by raising Insurance Premium Tax at the upcoming spring forecast. We look forward to continuing to work with the Government and wider sector to help support drivers and tackle claims costs.”
Related: Good news for young drivers as insurance premiums fall
