The average cost of motor cover across 2024 was £622 – 15%, or £78, higher than 2023.
In 2024, UK motor insurers paid a record £11.7 billion in car insurance claims, according to the Association of British Insurers (ABI). The average cost of motor cover rose by £78 annually, reaching £622, a 15% increase compared to 2023. However, the average price for cover decreased by £14 in the final quarter of the year, dropping to £621 from £635 in the first quarter. Total claims payouts for privately-owned cars rose by 17% compared to 2023, marking the highest level since data collection began in 2013. Insurers handled 2.4 million motor claims, with an average payout of £4,900 per claim, rising to £5,300 in the final quarter. Vehicle repair costs reached £7.7 billion annually, up £1.5 billion from 2023. The ABI emphasized efforts to reduce costs and warned against increases in insurance premium tax, expressing commitment to working with the government to support drivers.
