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The United Kingdom motor insurance market size reached approximately USD 23.54 billion in 2023. The market is projected to grow at a CAGR of 4.1% between 2024 and 2032, reaching a value of around USD 34.02 billion by 2032.
Reference | Time Period | Statistic | Value |
Association of British Insurers | July-September 2023 | Average annual premium for private car insurance | £561 |
ABI data | 2021 | Lowest annual car insurance premiums for individuals aged 66 to 70 | GBP 261 |
UK motorists | 2024 | Record average annual insurance cost | Nearly £1,000 |
Motor insurance, variously known as automobile insurance or car insurance, is a form of insurance coverage designed to provide financial protection against losses or damages related to motor vehicles. It involves a contractual agreement between an insurance company (insurer) and a vehicle owner (policyholder), where the insurer agrees to compensate the policyholder for certain specified losses or liabilities arising from the use of the insured vehicle.
One of the prominent trends propelling the United Kingdom motor insurance market growth is the integration of advanced technologies in vehicles. Telematics, for instance, plays a crucial role in transforming the domain. Telematics devices installed in vehicles enable insurers to gather real-time data on driving behaviour. This data is then used to assess risk more accurately, leading to personalised insurance policies. As technology continues to evolve, the adoption of artificial intelligence and machine learning is also on the rise, aiding in claims processing, fraud detection, and risk assessment.
Personalised rates via telematics, expanded electric vehicle coverage, digital enhancements for better customer service, and updated policies for shared mobility are positively impacting the United Kingdom motor insurance market growth
Date | Company | Event |
Jan 18th 2024 | Qover | Announced the launch of its motor insurance solution in the UK, enabling vehicle manufacturers to provide digital insurance programmes throughout Europe. |
Jan 18th 2024 | QuestGates | Enhanced its UK motor claims presence with the acquisition of Kent-based Claims Management & Adjusting Ltd (CMA), specialising in vehicle claims for nearly three decades. |
Dec 6th 2023 | The Green Insurer | Launched a car insurance product powered by Cambridge Mobile Telematics (CMT) that analyses driving data and rewards drivers for driving responsibly. |
Nov 20th 2023 | AA Insurance Services | Renewed its partnership with Europcar Mobility Group UK for five years. Europcar's 40,000-vehicle fleet provides like-for-like replacements, enhancing AA's ability to meet the demands of growing EV drivers. |
Trend | Description |
Rising popularity of personalised premiums | Insurers leverage telematics and data analytics to offer tailored motor insurance rates based on individual driving behaviour, promoting safer practices and fairer pricing. |
Increasing coverage of electric vehicles | Increasing adoption of electric cars prompts insurers to adapt coverage models, address unique risks, and incentivise eco-friendly driving, reflecting the growing EV market in the UK. |
Growing focus on providing new products | Motor insurance companies are increasingly developing new policies that are different from the traditional 12-month policy. Gen Z is the main group of customers wanting something other than a basic motor policy. |
Updating policies to cover shared mobility solutions | Insurers adapt policies to accommodate the rise of ride-sharing and car-sharing services, ensuring comprehensive coverage for users engaging in diverse and evolving forms of transportation. |
The motor insurance market in the UK is highly competitive, with numerous insurers vying for market share. The entry of new players, including Insurtech startups, has intensified competition, prompting traditional insurers to innovate and enhance their offerings. Price competitiveness, product differentiation, and customer service play crucial roles in gaining a competitive edge. Insurers that leverage technology, data analytics, and customer insights can position themselves more effectively in this competitive landscape.
Regulatory developments have a significant impact on the United Kingdom motor insurance market. Changes in regulations often influence pricing structures, coverage requirements, and market competition. The implementation of new laws, such as those related to environmental standards or safety measures, can affect the insurance industry by altering risk profiles and influencing underwriting practices. Staying compliant with evolving regulations is crucial for insurers to navigate the market effectively.
“United Kingdom Motor Insurance Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup | Categories |
Policy Type | Liability Insurance, Comprehensive Coverage, Collision Coverage, Personal Injury Protection |
Premium Type | Personal Insurance Premiums, Commercial Insurance Premiums |
Distribution Channel | Direct Response, Insurance Agents, Banks, Others |
The demand for liability insurance is expected to significantly grow in the forecast period
Liability insurance is expected to be a significantly drivee the United Kingdom motor insurance market in the coming years. In the context of motor insurance, liability insurance plays a crucial role in covering the policyholder's legal obligations in the event of an accident where they are deemed at fault. There are typically two main components of liability insurance in motor insurance: bodily injury liability and property damage liability.
Meanwhile, comprehensive coverage is the most extensive type of coverage. It includes protection for third-party liability, fire, theft, and damage to your own vehicle, offering the highest level of protection.
On the other hand, Personal Injury Protection (PIP) differs from comprehensive coverage by focusing on motor accident injuries, covering medical bills, lost wages, and related costs regardless of fault. In contrast, comprehensive insurance safeguards against non-collision incidents like theft, vandalism, and natural disasters, providing optional protection for a vehicle's damage or loss. Both serve distinct purposes in enhancing auto insurance coverage.
Banks are expected to account a major portion of the United Kingdom motor insurance market share in the coming years
Banks are likely to be the largest source of insurance acquisition in the forecast period. However, consumers often associate banks more with financial services such as loans and savings rather than motor insurance. Due to this, many consumers in the UK prefer to purchase motor insurance directly from insurance companies through online platforms, over the phone, or through other direct channels without intermediaries. This approach allows for easy comparison of quotes and a streamlined purchasing process.
Some of the major players in the United Kingdom motor insurance market are innovating with digital technologies to create hyper-personalised policies
Company | Founded | Headquarters | Insurance Products |
Admiral Group plc | 1993 | Wales, United Kingdom | Car, home, travel, financial services |
Aviva Group | 1696 | London, United Kingdom | Life, general, health, asset management |
UK Insurance Limited | 1974 | Leeds, United Kingdom | Motor and home |
Hastings Group Holdings Ltd | 1996 | East Sussex, United Kingdom | Car, bike, van, home |
Other key players in the United Kingdom motor insurance market are Liverpool Victoria Financial Services Limited, Zurich Insurance Company Ltd., Axa S.A., General Re Corporation, and Royal & Sun Alliance Insurance Ltd., among others.
Major insurance companies in the country are increasingly adopting digital technologies to create more personalised policy for consumers. The companies are inclined to provide innovative solutions and increased adjustability to target the needs of the most tech savvy consumers.
This development can be attributed to few key factors presented by the Generation Z, including unfamiliarity and detachment with traditional insurance products. Moreover, it is more presumable for Gen Z to manage their transactions and documents via mobile app for convenience.
The demand for convenience has been a major driver for the United Kingdom motor insurance market growth. A majority of the country’s population is demanding for ability to adjust their insurance coverages on the basis of their needs and affordability.
Urban Jungle, a UK-based InsurTech and managing general agent, has made a major development, which aided the rapidly expanding of its customer base with a contemporary approach to renters' insurance. It offers streamlined processes allowing customers to secure coverage in under five minutes, flexible pay-as-you-go monthly payment options, and customisable policies for high-value items like laptops and gadgets. Currently, Urban Jungle serves over 20,000 customers, demonstrating significant growth in the market.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Policy Type |
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Breakup by Premium Type |
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Breakup by Distribution Channel |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
7 Opportunities and Challenges in the Market
8 Europe Motor Insurance Market Overview
8.1 Key Industry Highlights
8.2 Europe Motor Insurance Historical Market (2018-2023)
8.3 Europe Motor Insurance Market Forecast (2024-2032)
8.4 Europe Motor Insurance Market breakup by Country
8.4.1 United Kingdom
8.4.2 Germany
8.4.3 France
8.4.4 Italy
8.4.5 Others
9 United Kingdom Motor Insurance Market Overview
9.1 Key Industry Highlights
9.2 United Kingdom Motor Insurance Historical Market (2018-2023)
9.3 United Kingdom Motor Insurance Market Forecast (2024-2032)
10 United Kingdom Motor Insurance Market by Policy Type
10.1 Liability Insurance
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Comprehensive Coverage
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 Collision Coverage
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Personal Injury Protection
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
11 United Kingdom Motor Insurance Market by Premium Type
11.1 Personal Insurance Premiums
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Commercial Insurance Premiums
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
12 United Kingdom Motor Insurance Market by Distribution Channel
12.1 Direct Response
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Insurance Agents
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Banks
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Others
13 Market Dynamics
13.1 SWOT Analysis
13.1.1 Strengths
13.1.2 Weaknesses
13.1.3 Opportunities
13.1.4 Threats
13.2 Porter’s Five Forces Analysis
13.2.1 Supplier’s Power
13.2.2 Buyer’s Power
13.2.3 Threat of New Entrants
13.2.4 Degree of Rivalry
13.2.5 Threat of Substitutes
13.3 Key Indicators for Demand
13.4 Key Indicators for Price
14 Competitive Landscape
14.1 Market Structure
14.2 Company Profiles
14.2.1 Admiral Group plc
14.2.1.1 Company Overview
14.2.1.2 Product Portfolio
14.2.1.3 Demographic Reach and Achievements
14.2.1.4 Certifications
14.2.2 Aviva Group
14.2.2.1 Company Overview
14.2.2.2 Product Portfolio
14.2.2.3 Demographic Reach and Achievements
14.2.2.4 Certifications
14.2.3 UK Insurance Limited
14.2.3.1 Company Overview
14.2.3.2 Product Portfolio
14.2.3.3 Demographic Reach and Achievements
14.2.3.4 Certifications
14.2.4 Hastings Group Holdings Ltd.
14.2.4.1 Company Overview
14.2.4.2 Product Portfolio
14.2.4.3 Demographic Reach and Achievements
14.2.4.4 Certifications
14.2.5 Liverpool Victoria Financial Services Limited
14.2.5.1 Company Overview
14.2.5.2 Product Portfolio
14.2.5.3 Demographic Reach and Achievements
14.2.5.4 Certifications
14.2.6 Zurich Insurance Company Ltd.
14.2.6.1 Company Overview
14.2.6.2 Product Portfolio
14.2.6.3 Demographic Reach and Achievements
14.2.6.4 Certifications
14.2.7 Axa S.A.
14.2.7.1 Company Overview
14.2.7.2 Product Portfolio
14.2.7.3 Demographic Reach and Achievements
14.2.7.4 Certifications
14.2.8 General Re Corporation
14.2.8.1 Company Overview
14.2.8.2 Product Portfolio
14.2.8.3 Demographic Reach and Achievements
14.2.8.4 Certifications
14.2.9 Royal & Sun Alliance Insurance Ltd.
14.2.9.1 Company Overview
14.2.9.2 Product Portfolio
14.2.9.3 Demographic Reach and Achievements
14.2.9.4 Certifications
14.2.10 Others
15 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Europe Motor Insurance Market: Key Industry Highlights, 2018 and 2032
2. United Kingdom Motor Insurance Market: Key Industry Highlights, 2018 and 2032
3. United Kingdom Motor Insurance Historical Market: Breakup by Policy Type (USD Billion), 2018-2023
4. United Kingdom Motor Insurance Market Forecast: Breakup by Policy Type (USD Billion), 2024-2032
5. United Kingdom Motor Insurance Historical Market: Breakup by Premium Type (USD Billion), 2018-2023
6. United Kingdom Motor Insurance Market Forecast: Breakup by Premium Type (USD Billion), 2024-2032
7. United Kingdom Motor Insurance Historical Market: Breakup by Distribution Channel (USD Billion), 2018-2023
8. United Kingdom Motor Insurance Market Forecast: Breakup by Distribution Channel (USD Billion), 2024-2032
9. United Kingdom Motor Insurance Market Structure
In 2023, the market reached an approximate value of USD 23.54 billion.
The market is estimated to grow at a CAGR of 4.1% between 2024 and 2032.
The market is estimated to witness a healthy growth during 2024-2032 to reach around USD 34.02 billion by 2032.
The market is driven by the increasing adoption of advanced technologies to provide enhanced customer experience while opting for an insurance.
The growing competition in the market and the implementation of new laws are expected to propel the market development in the coming years.
The major policy types are liability insurance, comprehensive coverage, collision coverage, and personal injury protection.
The different premium types are personal insurance premiums and commercial insurance premiums.
The key players in the market include Admiral Group plc, Aviva Group, U K Insurance Limited, Hastings Group Holdings Ltd., Liverpool Victoria Financial Services Limited, Zurich Insurance Company Ltd., Axa S.A., General Re Corporation, and Royal & Sun Alliance Insurance Ltd., among others.
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