LexisNexis® Insurance Demand Meter U.K.
Motor insurance shopping trends in the U.K. for H2 2025Issued July 2026
A look at motor insurance shopping trends in the U.K. H2 2025.
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Motor insurance shopping and switching rates continued to moderate in 2025. The downward trend from H1 2025 carried through into H2 2025, in line with the easing of U.K. motor insurance premiums.
After record levels of shopping activity in 2024, the number of consumers looking for quotes for motor insurance fell from Q1–Q3 2025 compared to the same period in 2024. However, in Q4 2025 we saw a slight uptick in shoppers with around 1,000 more daily shoppers compared to Q4 2024.
Looking at the whole of 2025, about 17,000 fewer consumers on average per day shopped for a motor insurance policy compared to 2024. A pattern is also emerging of a marked drop off in shopping activity in Q4 – we see this consistently from 2022-2025. Switching activity remained flat for the first three quarters of 2025, then dropped slightly to 21% in Q4 - the lowest level since Q1 2023 and far below the peak of 25% seen in Q1 2024.
The sustained reduction in shopping and switching throughout 2025 can be closely linked to the general decrease in motor premiums over that year. They are also in line with inflation index trends throughout 20251. However, the broader operating environment has remained challenging for U.K. motor insurance providers in 20262.
Persistent inflation continues to drive up parts and labour expenses, while ADAS-equipped and electric vehicles add further complexity and cost3. At the same time, geopolitical and economic uncertainty is putting additional pressure on insurance provider margins2. As insurance providers continue raising premiums to offset these costs4, shopping and switching activity may increase once again.
Shopping and Policy Switching by Quarter
Click graph to zoom
Source: LexisNexis® Risk Solutions, Internal Study, 2026
Fewer consumers per day shopped for their motor insurance in 2025 vs. 2024.
Of motor policyholders switched insurance providers in Q4 2025, down from 24% in Q4 2024.
See citations on page 6.
The average value of cars insured in the U.K. dropped by almost £1,000 over the past two and a half years–from £11,000 in H2 2023 to around £10,000 at the end of H2 2025. At the same time there was a five-month increase in average vehicle age from 10 years to 10.5 years, as cost-of-living pressures and ongoing economic uncertainty kept drivers holding on to their cars for longer.
Our valuations and vehicle age data reflects seasonal registration cycles as each year’s March and September plate change activity drives sharp spikes in vehicle value and dips in average age. Between the September 2023 peak and the August 2024 trough, the average value swung by £1,800 – though these surges tend to fade quickly as buyers hold off for the next registration release.
With inflation (CPIH) continuing to rise, albeit more steadily, and further interest rate cuts unlikely, we expect this trend to continue in 2026.
Average Vehicle Value vs. Age by Policy Commencement Month
In the U.K. car parc, the average vehicle age increased between H2 2023 and H2 2025.
Average vehicle value drop in the U.K. car parc between H2 2023 and H2 2025.
Chinese car brands made up around 0.8% of vehicles on personal lines policies that were underwritten in 2024. This represented a slight increase when compared to two years prior, which was 0.6% in 2022.
With the recent introduction of new Chinese car brands and models to the U.K. market, the proportion of Chinese car brands insured has grown almost consistently quarter on quarter, ultimately doubling 2022’s volumes in 2025. At the end of 2025, Chinese car brands represented 1.2% of the total share of vehicles insured on personal lines policies.
Growth of Personal Lines - Motor Policies for Chinese Car Brands
Average number of Chinese branded vehicles insured on personal lines policies per quarter in 2022.
Average number of Chinese branded vehicles insured on personal lines policies per quarter in 2025.
The growth of Chinese car brands is accelerating change in the U.K. car parc, creating new considerations for vehicle valuation, repair costs, parts availability, residual values and claims trends.
When we see switching dynamics reduce in this way, it can represent increasing pricing stability, where people still shop, but ultimately find their renewal price is actually competitive, and hence don’t switch providers.
Has this trend continued into 2026? We are already seeing increasing claims costs invoke a return to premium increases. And whenever we see significant price movement, switching tends to follow, as insurers assess the same risk differently. The U.K. car parc continues to age, and with it, vehicle valuations are falling—the average car is now worth £1000 less than it was two years ago. As vehicles age, their ADAS specifications become more varied, and their servicing needs grow more complex, making it harder to keep them safely maintained.
This creates a fundamentally different risk profile for insurance providers to assess. As such, they are under increasing pressure to use granular intelligence on the vehicle itself.
It will be interesting to see where this trend line ultimately flattens out- and in the meantime who wins?
Not visible in the data for 2025, but likely to form a key part of the H1 2026 picture, is how regional conflicts and their global impacts can affect the vehicle mix on U.K. roads. With EVs now being seen as a more attractive option, will we see a large uptick in vehicle valuations, average vehicle age and insurance cover from new and used EV sales?
Consumer shopping and switching activity in motor insurance has found a new level of stability, 3% below its 2024 peak, as premiums continue to reduce and stabilise. The U.K. vehicle car parc is getting older, even though there are more brand-new cars on the roads. In just under two years, the average value of a car has dropped by £1000. Chinese car brands continue to expand into the U.K. market. They’ve doubled their market share in less than three years, with new models and new brands launching in the U.K. at an unprecedented rate. Insurance providers that can deploy risk insights to new challenges and opportunities, such as the ever-changing vehicle mix of the U.K. car parc, will be best placed to succeed.
Tom Lawrie-FusseyAssociate VP of Product Management, U.K. and Ireland, LexisNexis Risk Solutions
It offers a unique view of consumer trends, insurance provider performance and competitive dynamics shaping the U.K. motor insurance market.
1 Office for National Statistics. (2026, May 20). CPIH annual rate 00: All items 2015=100 [Data set]. https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/l55o/mm23
2 Ernst & Young. (2025, December 13). UK motor insurers to make sizeable losses in 2026https://www.ey.com/en_uk/newsroom/2025/12/ey-latest-motor-insurance-results-analysis UK
3 Association of British Insurers. (2025, August 13). Motor premiums fall - but repair and theft costs keep revving up claims. https://www.abi.org.uk/news/news-articles/2025/7/motor-premiums-fall---but-repair-and-theft-costs-keep-revving-up-claims/
4 Confused.com. (2026, June 24). Has car insurance gone up?https://www.abi.org.uk/news/news-articles/2025/7/motor-premiums-fall---but-repair-and-theft-costs-keep-revving-up-claims/
5 Financial Conduct Authority. (2026, July 21). General insurance value measures data 2025 [Data set].https://www.fca.org.uk/data/general-insurance-value-measures-data-2025
6 EY. (2026, July 23). UK motor insurers expected to remain loss-making in 2026. https://www.ey.com/en_uk/newsroom/2026/07/ey-latest-motor-insurance-results-analysis
