The Association of British Insurers has said motor premiums nudged up by 1% in Q1 2024, when compared to the same quarter last year, but reported the average claim was up by 8% to hit a record of £4,800 for the same period. The data came from the ABI’s Motor Insurance Tracker (Q1’24).

Mervyn Skeet (pictured), director of general insurance policy for the ABI, said: “We understand that car insurance costs are putting pressure on household finances. These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable.

“Even though these figures demonstrate a slowdown in price increases, we won’t be taking our foot off the gas when it comes to our work on tackling the cost of cover.”