Minor scuff, major bill: How complex car technology is driving up accidental repair claims
Wed, 20 May 2026
New figures show that the average cost of an annual UK car insurance policy is now £560 but accidental damage claims are on the rise with the average repair costing more than £3500.
According to the Association of British Insurers (ABI) latest figures, the average comprehensive policy held steady at £560, a £1 increase on the previous quarter and £30 cheaper than this time last year.
However, the industry watchdog has issued a stark warning as the average accidental damage claim has surged to £3699 – an 8% rise just three months. Insurers are blaming the rise on vehicle complexity.
The very tech keeping us safe – parking sensors, ADAS lane-keep cameras and radar cruise systems hidden in bumpers – means even a minor car park scuff now requires expensive, specialist component replacement and digital recalibration.
Car repair costs climbing
Car insurers paid out £2.9 billion in the first three months of the year, of which a significant £1.9 billion was for vehicle repairs, up 3% on the last quarter of 2025.
Rising costs are also to blame for the number of uninsured drivers reaching a 17-year high on the UK's roads, as drivers skip costly cover and take their chances, despite the risk of a £300 fine and six penalty points if they're caught.
The complication of modern cars
The ABI notes that the complexity of modern vehicles has a huge bearing on the cost of car insurance. While new tech features help to improve road safety and should reduce the frequency of claims, suites of sophisticated sensors and cameras can make repairs or replacements much more expensive when damage or theft occurs.
In addition to complexity requiring damaged cars to be off the road for longer, the availability of parts has also impacted repair times, further contributing to longer repairs and adding extra cost through things like longer replacement car hire bills.
Who's counting the cost?
The ABI tracks the average cost of car insurance, with the trade body's Motor Insurance Premium Tracker analysing over 28 million policies sold a year.
The tracker also uses the price drivers pay for their insurance, rather than just using data for quotes, giving the clearest idea of one of the major costs of running a car.
"It’s encouraging to see motor insurance premiums have remained stable in the first three months of this year, underlining the industry’s efforts to tackle costs," says Chris Bose, Director of GI and International at the ABI.
"However, the sustained high costs of repairs continue to be a concern. Working with our members and government, we’ll maintain momentum to drive forward the work of the Motor Insurance Taskforce to support motorists."
