Motor insurance premiums have seen a decrease of £60 over the past year, with figures from the Association of British Insurers (ABI) showing an average premium of £562 for April to June 2025, down from £622 in the same period in 2024.

The average premiums also saw a drop of £19 compared to the first quarter of the year. The ABI reported that its members paid out a hefty £3.1 billion in car insurance claims during the second quarter of the year.

The ABI highlighted that the complexity of modern vehicles, with their advanced electronics, intricate sensors and integrated systems, has led to more complex and time-consuming repairs, contributing significantly to elevated claims costs.

Further exacerbating costs for insurers are shortages of skilled technicians, which slow down repair times. The high cost of theft claims also played a significant role in the payouts, according to the ABI.

The average claim for vehicle theft rose by £319 compared to the previous quarter, reaching a staggering £11,800. Between April and June, insurers settled 669,000 claims, a 5% increase from the 639,000 settled in the first three months of the year.

Further exacerbating costs for insurers are shortages of skilled technicians, which slow down repair times. The high cost of theft claims also played a significant role in the payouts, according to the ABI.

The average claim for vehicle theft rose by £319 compared to the previous quarter, reaching a staggering £11,800. Between April and June, insurers settled 669,000 claims, a 5% increase from the 639,000 settled in the first three months of the year.

Mark Shepherd, head of general insurance policy at the ABI, said: "It's encouraging to see motor premiums have fallen for a second consecutive quarter, offering some much-needed relief to drivers.

"But with the cost of cover still weighing on household finances, we must not lose momentum in tackling the persistent pressures driving up claims."

The ABI's findings are drawn from nearly 28 million policies purchased annually and reflect actual premiums paid rather than quoted prices.