For the most up-to-date market research on the UK motor insurance market, take a look at Mintel’s newly published UK Motor Insurance Market Report 2025
Consumer spending constraints and increased price-sensitivity are shaping buying and renewal habits in the motor insurance market. UK car insurance consumers appreciate a smooth renewal process, with the flexibility to make adjustments to suit their budget. Over a third of policyholders altered their cover, level of excess or payment terms at their last renewal.
Average premiums in the UK car insurance market increased by 25% over the past year, driven by rocketing claim costs and hardening reinsurance rates. Controlling costs is the number one objective for insurers, as they strive to maintain or return to profitability, while helping customers adjust to paying more for their insurance cover.
Opportunities in the UK car insurance market lie in the changing patterns of car ownership. More drivers are switching to hybrid or electric cars, creating rising demand for electric car insurance, as well as eco-friendly features in general. Telematics is the other main growth area, and one that is set to evolve with the roll-out of driverless cars.
Key Issues Covered in this Report
- Impact of inflation on private motor insurance claims and premiums, as well as customer behaviour and buying habits
- The market’s recent performance and its prospects for future growth
- Innovations, competitive strategies and marketing initiatives of leading motor insurance brands
- Ownership of and attitudes towards different levels of cover, as well as policy add-ons
- Generational and demographic differences among key consumer segments
Expert Analysis from a Financial Services Specialist
This report, written by Sarah Hitchcock, a leading financial services analyst, delivers in-depth commentary and analysis to highlight current trends in the UK car insurance market and add expert context to the numbers.
Telematics insurance can be repositioned as a viable and rewarding solution for all good drivers, whether young or old.
Sarah Hitchcock
Associate Consultant – Financial Services
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- Key issues covered in this Report
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Executive Summary
- Opportunities for the motor insurance market
- Market dynamics and outlook
- What consumers want and why
- Graph 1: whether policyholders switched or stayed with existing provider at last renewal, by change in premium, 2023
- Graph 2: policy, excess or payment amendments made at last renewal, 2023
- Innovation and marketing
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Market Dynamics
- Market size
- Graph 3: size of the domestic motor insurance market, by gross and net written premium, 2018-23
- Graph 4: average annual domestic comprehensive motor insurance premium – new versus renewal policies, 2000-23
- Market forecast
- Claims and underwriting performance
- Graph 5: domestic motor insurance claims and expenses ratios, 2013-22
- Market share
- Graph 6: top 10 share of domestic motor GWP (group basis), 2022
- Distribution channels
- Graph 7: proportional breakdown of personal motor gross written premium, 2022
- Graph 8: agreement with statement “I like to use a price comparison website when shopping around for car insurance”, 2023
- Market drivers
- Graph 9: CPI annual rate*, 2019-24
- Graph 10: number of reported road collisions (all vehicles), 2000-22
- Regulatory and legislative update
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What Consumers Want and Why
- Type of motor insurance owned
- Graph 11: segmentation of aged 17+ population by whether or not they own a car personally, 2023
- Graph 12: segmentation of total population by ownership of a car for personal use, 2023
- Graph 13: type of car insurance policy owned by licence holders, 2023
- Graph 14: type of motor insurance held by annual policyholders, by age, 2023
- Graph 15: ownership of specialist motor insurance, 2023
- Customer experience at last renewal
- Graph 16: change in premium at last renewal, by level of cover, 2023
- Graph 17: whether policyholders switched or stayed with existing provider at last renewal, by level of cover, 2023
- Graph 18: policy, excess or payment amendments made at last renewal, 2023
- Expected behaviour at next renewal
- Graph 19: expected behaviour at next renewal, 2023
- Graph 20: segmentation of motor policyholders, by tendency to stick or switch provider, 2023
- Importance of common policy features and add-ons
- Graph 21: how essential customers view selected policy features and optional extras, 2023
- Attitudes towards car usage and insurance
- Graph 22: agreement with statement “I’m making a conscious effort to drive less”, 2023
- Graph 23: agreement with statements about rewards for good driving, premium guarantee, auto-renewal and excess affordability, 2023
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Innovation And Marketing Trends
- Competitive strategies and launch activity
- Advertising and marketing activity
- Graph 24: total above-the-line, online display and direct mail advertising expenditure on motor and related insurance, 2021-23
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Appendix
- Supplementary data
- Market forecast data and methodology
- Report scope and definitions
- Methodology
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