This page compiles official UK car insurance statistics from primary government and industry sources, including the Association of British Insurers (ABI), the Motor Insurers' Bureau (MIB), the Department for Transport (DfT), and HMRC. Every figure is traced to a named source and publication date. Updated June 2026.
The headline numbers
- Average private motor insurance premium in Q1 2026: £560 (ABI Motor Insurance Premium Tracker, Q1 2026)
- Total motor insurance claims paid in 2025: £11.9 billion across 2.5 million claims (ABI, February 2026)
- Uninsured vehicles on UK roads on any given day: approximately 300,000 (MIB, 2025)
- Total Insurance Premium Tax receipts in 2024-25: £8,883 million (HMRC IPT Bulletin, 2025)
- Fraudulent motor insurance claims detected in 2024: 51,700 cases worth £576 million (ABI Fraud Data, November 2025)
Key facts
- The average motor premium fell 3.4% year-on-year from Q1 2025 to Q1 2026, from £580 to £560 (ABI, Q1 2026).
- Motor insurers paid out £3.2 billion in Q1 2025 alone, the highest quarterly figure since records began in 2013 (ABI, May 2025).
- There were 34.485 million licensed cars on UK roads at end of 2025 (DfT VLS, 2025).
- Almost 160,000 uninsured cars were seized in the UK in 2025, described as a 17-year high (MIB, 2025).
- Motor insurance is legally compulsory under Section 143 of the Road Traffic Act 1988 (legislation.gov.uk).
- The standard rate of Insurance Premium Tax (IPT) on motor insurance is 12%, unchanged since June 2017 (HMRC).
Headline figures for 2026
The ABI Motor Insurance Premium Tracker showed the average private motor premium at £560 in Q1 2026, based on nearly 28 million policies sold each year (ABI, Q1 2026). Compared to Q1 2025 (£580), this represents a 3.4% fall (ABI, Q1 2026).
Insurers paid out £2.9 billion in claims in Q1 2026, with £1.9 billion attributable to vehicle repairs (ABI, Q1 2026). The 42.3 million licensed vehicles recorded at end of 2025 provide the exposure base underpinning these figures (DfT VLS, 2025).
| Metric | Value (Source, Year) |
|---|---|
| Average private motor premium, Q1 2026 | £560 (ABI Motor Insurance Premium Tracker, Q1 2026) |
| Change from Q1 2025 | -£20 / -3.4% (ABI, Q1 2026) |
| Total claims paid, Q1 2026 | £2.9 billion (ABI, Q1 2026) |
| Vehicle repair claims, Q1 2026 | £1.9 billion (ABI, Q1 2026) |
| Average accidental damage claim, Q1 2026 | £3,699 (ABI, Q1 2026) |
| Total licensed vehicles in UK, end 2025 | 42.3 million (DfT VLS, 2025) |
Premiums
After reaching a record high of £627 in Q4 2023 (ABI, January 2024), private motor premiums fell through 2024 and 2025. The 2024 annual average was £622, some 15% above the 2023 full-year average of £543 (ABI, February 2025). By Q3 2025, the average stood at £551 (ABI, November 2025).
| Quarter | Average Premium | Source |
|---|---|---|
| Q4 2023 (record high) | £627 | ABI Motor Insurance Premium Tracker, January 2024 |
| Q1 2024 | £635 | ABI Motor Insurance Premium Tracker, February 2025 |
| Q3 2025 | £551 | ABI Motor Insurance Premium Tracker, November 2025 |
| Q4 2025 | £559 | ABI Motor Insurance Premium Tracker, February 2026 |
| Q1 2026 | £560 | ABI Motor Insurance Premium Tracker, April 2026 |
Claims
Motor insurance claims reached a record £11.9 billion across 2.5 million claims in 2025 (ABI, February 2026). In 2024, the industry paid out £11.7 billion across 2.4 million claims, a 17% increase on 2023 (ABI, February 2025). Fraud is a significant burden: 51,700 fraudulent motor claims worth £576 million were detected in 2024, representing 53% of all fraudulent insurance claims by volume (ABI, November 2025).
| Metric | Value (Source, Year) |
|---|---|
| Total motor claims paid, 2025 | £11.9 billion (ABI, February 2026) |
| Number of claims settled, 2025 | 2.5 million (ABI, February 2026) |
| Total motor claims paid, 2024 | £11.7 billion (ABI, February 2025) |
| Vehicle repair costs, 2024 | £7.7 billion (ABI, February 2025) |
| Record quarterly payout, Q1 2025 | £3.2 billion (highest since 2013 records began) (ABI, May 2025) |
| Fraudulent motor claims detected, 2024 | 51,700 cases worth £576 million (ABI, November 2025) |
Uninsured driving
The MIB estimates approximately 300,000 uninsured vehicles are on UK roads on any given day (MIB, 2025). Almost 160,000 uninsured vehicles were seized across 2025, described by MIB as a 17-year high (MIB, 2025). MIB paid more than £400 million in compensation in 2024 to support those affected by uninsured and hit-and-run drivers (MIB, January 2025).
| Metric | Value (Source, Year) |
|---|---|
| Uninsured vehicles on roads daily (estimate) | approximately 300,000 (MIB, 2025) |
| Uninsured vehicles seized, 2025 | approximately 160,000 (17-year high) (MIB, 2025) |
| Annual economic cost of uninsured driving | £1 billion (government estimate cited by MIB, 2025) |
| MIB compensation paid, 2024 | more than £400 million (MIB, January 2025) |
| Deaths caused by uninsured drivers, per year | more than 50 (MIB, 2025) |
Insurance Premium Tax and pricing rules
Insurance Premium Tax (IPT) at the standard rate of 12% applies to most UK motor insurance premiums, unchanged since June 2017 (HMRC). Total IPT receipts across all insurance lines reached £8,883 million in 2024-25, a 9% increase on 2023-24 (HMRC IPT Bulletin, 2025). The FCA's General Insurance Pricing Practices rules, effective January 2022, require that renewing customers pay no more than equivalent new customers; the FCA estimated this delivered savings of approximately £1.6 billion to motor and home insurance customers over a ten-year horizon (FCA, PS21/5).
| Metric | Value (Source, Year) |
|---|---|
| Standard IPT rate on motor insurance | 12% (HMRC, since June 2017) |
| Total IPT receipts, 2024-25 | £8,883 million (HMRC IPT Bulletin, 2025) |
| Year-on-year change in IPT receipts, 2024-25 | +£737 million (+9%) (HMRC IPT Bulletin, 2025) |
| Estimated customer savings from GIPP (motor + home) | approximately £1.6 billion over ten years (FCA, PS21/5, 2021) |
Trends over time
| Year | Average Motor Premium | Source |
|---|---|---|
| Full year 2022 | £434 annual average | ABI Motor Insurance Premium Tracker, January 2024 |
| Full year 2023 | £543 annual average (+25% on 2022) | ABI Motor Insurance Premium Tracker, January 2024 |
| Full year 2024 | £622 annual average (+15% on 2023) | ABI Motor Insurance Premium Tracker, February 2025 |
| Full year 2025 | £564 annual average (-9% on 2024) | ABI Motor Insurance Premium Tracker, February 2026 |
| Q1 2026 | £560 (-3.4% year-on-year) | ABI Motor Insurance Premium Tracker, April 2026 |
Regional breakdown
The ABI's published premium tracker data does not disaggregate average premiums by region in public releases. The MIB publishes postcode-level data on uninsured driving, as shown below (MIB, November 2025).
| Area / Region | Metric and Value (Source, Year) |
|---|---|
| RM19, Thurrock, Essex | Ranked 1st nationally for uninsured driving defendants per capita (MIB, November 2025) |
| West Midlands (inc. Birmingham) | 5 of the top 15 uninsured driving hotspot postcode areas in 2025 (MIB, November 2025) |
| Zero-emission cars, UK (end 2025) | 1.737 million licensed (5.0% of all licensed cars) (DfT VLS, 2025) |
| Zero-emission cars: share of new registrations, 2025 | 23% of all new car registrations (473,000 of 2.071 million) (DfT VLS, 2025) |
Electric vehicles and the insurance market
Zero-emission cars reached 1.737 million licensed vehicles at end 2025, representing 5.0% of all licensed cars in the UK (DfT VLS, 2025). They accounted for 23% of all new car registrations in 2025, totalling 473,000 of 2.071 million new registrations (DfT VLS, 2025). The ABI has noted that EV repair complexity contributes to rising repair claims costs (ABI, Q1 2026).
How motor insurance data is collected
The ABI Motor Insurance Premium Tracker records prices actually paid by customers, drawing on nearly 28 million policies per year (ABI, Q1 2026). Vehicle licensing statistics are produced by the Department for Transport and updated annually (DfT VLS, 2025). IPT receipts data is published by HMRC on a quarterly basis and covers all general insurance lines (HMRC IPT Bulletin, 2025).
Legal framework
Motor insurance is compulsory under Section 143 of the Road Traffic Act 1988, which makes it a criminal offence to use a motor vehicle on a road without a valid insurance policy (legislation.gov.uk). Driving without insurance carries a fixed penalty of 6 points and a £300 fine, with courts able to impose an unlimited fine and disqualification (legislation.gov.uk).
Sources of cost pressure
The ABI identifies several primary cost drivers: higher vehicle repair bills due to complex modern components such as sensors and cameras; rising labour and parts costs; longer repair times; and increases in theft claims (ABI, Q1 2026). Vehicle repair costs totalled £7.7 billion in 2024, up £1.5 billion on 2023 (ABI, February 2025).
The figures on this page are compiled from official and primary-source data published by the Association of British Insurers (ABI), the Motor Insurers' Bureau (MIB), the Department for Transport (DfT), and HMRC. Sources and release dates are cited inline. Figures represent the most recently published data available as of June 2026. Statistics are subject to revision by the originating body. This page does not constitute financial advice. Always consult the original source publications for full methodology and caveats.
Frequently asked questions
What is the average car insurance premium in the UK in 2026?
The average private motor insurance premium was £560 in Q1 2026, based on the price customers actually paid across nearly 28 million policies (ABI, Q1 2026). This was £20 lower than Q1 2025 (ABI, Q1 2026).
Is car insurance compulsory in the UK?
Yes. Section 143 of the Road Traffic Act 1988 makes it a criminal offence to use a motor vehicle on a road without a valid insurance policy covering at least third-party liability (legislation.gov.uk).
Why are car insurance premiums rising?
The ABI identifies complex modern vehicle components, rising labour and parts costs, and increasing theft claims as primary drivers (ABI, Q1 2026). Vehicle repair costs across the industry totalled £7.7 billion in 2024 alone (ABI, February 2025). Premiums did fall during 2025 after the record 2023-2024 peak.
How much does uninsured driving add to premiums?
The MIB estimates the economic cost of uninsured and hit-and-run driving at £1 billion per year, ultimately borne by insured motorists through levy contributions (MIB, 2025). In 2024, MIB paid more than £400 million in compensation to victims (MIB, January 2025).
What tax applies to car insurance premiums in the UK?
Insurance Premium Tax at 12% is charged on most UK motor insurance premiums, unchanged since June 2017 (HMRC). Total IPT receipts across all lines reached £8,883 million in 2024-25 (HMRC IPT Bulletin, 2025).
How many motor insurance claims are made each year in the UK?
In 2025, UK motor insurers handled approximately 2.5 million claims and paid out £11.9 billion (ABI, February 2026). The highest single-quarter payout recorded was £3.2 billion in Q1 2025, the largest quarterly figure since records began in 2013 (ABI, May 2025).
Sources
- Association of British Insurers, Motor Insurance Premium Tracker Q1 2026 (April 2026). abi.org.uk
- Association of British Insurers, Motor Insurance Premium Tracker Q3 2025 (November 2025). abi.org.uk
- Association of British Insurers, Motor Insurance Premium Tracker Q2 2025 (July 2025). abi.org.uk
- Association of British Insurers, Motor Insurance Premium Tracker Q1 2025 (May 2025). abi.org.uk
- Association of British Insurers, Motor Claims Annual 2025 (February 2026). abi.org.uk
- Association of British Insurers, Motor Claims Annual 2024 (February 2025). abi.org.uk
- Association of British Insurers, Motor Insurance Premium Tracker Q4 2023 (January 2024). abi.org.uk
- Association of British Insurers, Fraud Data 2024 (November 2025). abi.org.uk
- Motor Insurers' Bureau, "The difference MIB makes in numbers" (January 2025). mib.org.uk
- Motor Insurers' Bureau, "New data reveals the UK's top uninsured driving areas" (November 2025). mib.org.uk
- Department for Transport, Vehicle Licensing Statistics, United Kingdom: 2025 (VEH series, 2026). gov.uk
- HMRC, Insurance Premium Tax (IPT) Bulletin (2025). gov.uk
- FCA, PS21/5: General Insurance Pricing Practices (2021). fca.org.uk
- legislation.gov.uk, Road Traffic Act 1988, Part VI. legislation.gov.uk