Motor premium prices drop 3% in Q2 – ABI

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Average motor insurance premiums fell by 3% in the second quarter, taking the annual drop to 9.6%, according to the Association of British Insurers.

The declines were in line with previous research by Confused/WTW which also recorded a 3% drop, in that instance in the three months to June, and a 16% year-on-year reduction.

The ABI uses policies sold rather than quotes, which will also have contributed to the slight discrepancy.

The trade body detailed that its premium tracker measured the average price at £562 in Q2 2025.

Claims

It noted that members paid out £3.1bn in car insurance claims during the three months which it highlighted maintained

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