LexisNexis® Insurance Demand Meter U.K.
Motor insurance shopping trends in the U.K. for H1 2026Issued November 2026
A look at motor insurance shopping trends in the U.K. H2 2025.
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Motor insurance shopping volumes rebounded to record levels in the first half of 2026, reaching the highest point since LexisNexis Risk Solutions began monitoring shopping and switching activity in 2022, while switching among existing policyholders remained flat. This is in line with the low levels of motor insurance switching seen throughout 2025 compared with 2024.
Consumer motor insurance shopping activity reached record levels in the first half of 2026, with the average number of shoppers per day reaching approximately 403,600. This represents a year-on-year increase of approximately 31,000 more shoppers per day. The rise in shopping activity is likely driven by ongoing cost-of-living pressures and broader economic uncertainty.1
In contrast, motor insurance switching activity remained relatively subdued. Switching rates held steady at around 22% throughout H1 2026, broadly in line with 2025. The divergence between shopping and switching behaviour suggests that consumers are increasingly price-aware and willing to compare providers, while insurance providers appear to be maintaining effective retention strategies in a competitive market.
Looking ahead to H2 2026, shopping activity is likely to remain strong as households continue to seek value amid ongoing cost pressures.2 Whether this shopping activity leads to higher switching will depend on pricing strategies, competitive dynamics, and customer satisfaction beyond price. While switching has remained relatively stable, continued affordability concerns could drive greater movement between providers if price differences become more pronounced.
Shopping and Policy Switching by Quarter
Click graph to zoom
Source: LexisNexis® Risk Solutions, Internal Study
More motor insurance shoppers every day on average in the first half year of 2026 vs. 2025
of motor policyholders switched insurers in H1 2026, marginally lower than in 2025
See citations on page 6.
Comparing consumer shopping and switching in two of the U.K.’s key economic hubs, regional analysis shows that motor insurance policyholders in Manchester switched motor insurance providers more readily than those based in London in the first half of 2026, with 23% on average switching compared to London's 21%.3 However, the gap is closing, suggesting that switching behaviour in the two cities is becoming increasingly similar, even though Manchester policyholders remain more likely to switch. The convergence suggests that retention patterns are becoming more consistent across regional markets, with Manchester's historically higher churn aligning to the national trend.
Looking ahead to H2 2026, Manchester’s switching rates are likely to draw marginally closer to the national average, though the scope for further narrowing is limited. The June 2026 uplift seen in the graph for Manchester, London and the national average is worth watching. If the upward trend persists in the second half of the year, it would suggest affordability pressure is lifting switching nationally.
UK Motor Policy Switch Rate Comparison: London vs Manchester (Jan 2025 – Jun 2026)
higher switch rate on average every month for Manchester vs London
We have seen a steady growth in either fully or partially electric vehicles (EVs) since 2022; hybrid volumes grew 17%, and EVs increased 27% year on year. In contrast, registrations of internal combustion engined vehicles (ICE) fell 8% with ICE registrations declining to 29% in four years. This suggests drivers have been seeking lower emissions without fully committing to an EV.
Hybrid powertrains accounted for 46% of all new car registrations in H1 2026, ahead of ICE holding 30% of new registrations and EV at 24% of new registrations - implying that 70% of new cars registered in H1 2026 in the UK are either partially or fully electric.
Looking forward
As fuel costs remaining elevated due to continuing uncertainty in the geopolitical situation, and as drivers are offered a range of incentives to move to an EV, we expect the trend to continue.4,5 Given the narrowing gap between EV and ICE registrations and continued market momentum towards electrified powertrains, the first half of 2027 could see new EV registrations surpass ICE registrations. This transition in powertrain preference may also sustain momentum in motor insurance shopping activity, as consumers continue to explore and compare hybrid and EV alternatives before making purchasing decisions.
Trends in New Car Registrations by Powertrain Type (Jan 2022 – Jun 2026)
Source: LexisNexis Risk Solutions internal study of DFT data
of new cars registered in H1 2026 in the UK are either partially or fully electric
U.K. motor insurance pricing remains under pressure due to rising claims costs.6 The increase in premiums reported for the first half of 2026 have not, however, led to any evident uptick in switching, despite record levels of shopping, as consumers search for a competitive deal. If pricing changes more significantly in the second half of 2026, many of those shoppers are likely to become switchers, a reality that the motor insurance market must be prepared to address.
At the same time, the profile of the U.K. car parc will continue to evolve as battery electric and hybrid vehicles make up more of the mix. Rising fuel costs and incentives such as the EV grant have likely played a role in accelerating the shift towards electric vehicles.7 For motor insurance providers, the changing vehicle mix combined with continued pressure to keep pricing affordable, will make access to granular vehicle intelligence from quote through to claim increasingly important for underwriting, claims and repair decision making.
Our data shows that while motor insurance shopping reached record levels in the first half of 2026, only around a fifth of consumers decided to switch insurance providers. This says much about pricing and retention strategies in the motor insurance market. Even as insurance providers feel the pressure of record rises in claims costs, pricing remains broadly competitive with only marginal increases in the first half of 2026.6
The slightly higher switching rate for Manchester compared to London is interesting as it demonstrates how insurance providers could factor for regional differences in consumers’ insurance shopping behaviour. As the U.K. car parc continues to evolve, with hybrids accounting for 46% of new private car registrations, insurance providers that use risk insights to understand both changing consumer behaviour and the fast-changing vehicle mix on U.K. roads will be best placed to keep the customers they have and win new ones.”
Tom ClarkeU.K. and Ireland Motor Strategy DirectorLexisNexis Risk Solutions
It offers a unique view of consumer trends, insurance provider performance and competitive dynamics shaping the U.K. motor insurance market.
1https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/businessinsightsandimpactontheukeconomy/24september2026
2https://commonslibrary.parliament.uk/research-briefings/cbp-10100/
3https://www.bbc.com/news/articles/c0ljgzjwjx3o
4https://www.rac.co.uk/drive/advice/fuel-watch/
5https://www.coxautoinc.eu/ev-hub/driver-ev-hub/ev-grants-and-incentives-uk-your-guide-to-savings-in-2025/
6https://www.abi.org.uk/media-hub/news-post/record-32-billion-paid-out-to-support-motor-insurance-customers-in-q2-2026
7https://find-government-grants.service.gov.uk/grants/electric-car-grant-1
