Motor and home insurance premiums: what official figures show for 2026
Average premiums for motor and home insurance have shifted significantly over the past two years. Here is what the latest official and industry data shows, broken down by region and cover type — and what is driving the changes.
Motor insurance premiums
Motor insurance premiums have risen significantly across the UK, US, and Australia over the past two years, driven primarily by vehicle repair cost inflation and rising personal injury claim values.
- UK: The ABI Motor Premium Tracker tracks average premiums quarterly for comprehensive motor policies.
- US: The Insurance Information Institute auto insurance data shows state-by-state average premiums and trends.
- Australia: APRA's general insurance statistics include motor premium data by insurer and state.
The primary drivers of motor premium increases include: EV and hybrid repair complexity and parts costs, rising court awards for whiplash and personal injury claims, and increased theft rates for keyless-entry vehicles.
Home insurance premiums
Home insurance premiums have been heavily affected by natural catastrophe losses. In high-risk zones — coastal flood areas, bushfire-prone regions, and hurricane corridors — some policyholders have seen double-digit annual increases, and in extreme cases cover has become unavailable at any price.
Key data sources:
- The III homeowners insurance facts and statistics include average premiums by US state.
- The ABI research publications cover UK home insurance market data.
What you can do about rising premiums
While market-wide trends are outside individual control, there are legitimate strategies to reduce your own premium:
- Shop at renewal — switching remains the most effective lever
- Raise your deductible if your emergency fund can support it
- Bundle home and motor with the same insurer for a multi-policy discount
- Install approved security devices — alarms, dashcams, and locks reduce assessed risk
- Reduce unnecessary coverage on lower-value assets
Our guide to how premiums are set explains the factors that affect your individual price and which ones you can influence.
Premium data FAQ
Frequently asked questions
- Multiple factors have converged: claims inflation (parts and repair costs have risen sharply), higher court awards for personal injury claims, increased natural catastrophe losses affecting home insurance, and post-pandemic supply chain costs that have not fully unwound. The ABI Motor Premium Tracker and Insurance Information Institute data both document the trend.
- Industry analysts expect some moderation as claims inflation slows and insurers adjust pricing. However, frequency of weather-related events continues to put pressure on home insurance in many regions. The Swiss Re Institute sigma reports provide annual analysis of global insurance market trends.
- Shopping around at renewal remains the single most effective action. Loyalty no longer guarantees a good price, and comparison sites now show real-time new-customer prices. Increasing your deductible, improving security, and bundling policies can also reduce your premium. See our guide to how premiums are set for the factors you can and cannot control.