LexisNexis® Insurance Demand Meter U.K.
Motor insurance shopping trends in the U.K. for H1 2025Issued H2 2025
A look at motor insurance shopping trends in the U.K. H1 2025.
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After record levels of shopping activity in 2024, H1 2025 saw a drop in the number of consumers researching new quotes for motor insurance, corresponding to premium decreases.1 About 20,000 fewer consumers on average per day shopped for a motor insurance policy compared to the same period last year. Switching also cooled off in the first half of this year: 22% of policyholders switched insurance providers, down from the 24% noted in Q4 2024. Switching eased most notably in Q1 2025, but by Q2 2025 activity levelled off.
The reduction we have seen in the number of consumers shopping and switching is almost certainly due to the general decrease in motor premiums in H1 2025. These price reductions offered a welcome respite for many policyholders as other household costs continue to grow.1 However, the easing of motor premiums may only be temporary as the rising cost of repairs and associated increased claims costs could lead to another trend reversal for shopping and switching.2
fewer consumers shopped for their motor insurance every day in H1 2025 vs. H1 2024
of motor policyholders switched insurance providers in H1 2025 (a 3% drop from H1 2024)
All citations can be found on page 6.
From Q3 2023 to Q3 2024 we saw the Top 10 insurance providers consistently winning more policies than they lost to the rest of the market. As highlighted in our last report, a potential driver of this was the exit of RSA, Zurich and Covea Direct from the personal lines motor market.4 Our data suggests these motor insurance customers switched to the recognised brands in the Top 10. A lack of capacity as well as increasing premiums and high claim costs in the U.K. motor policy market may also have hindered competition from smaller, less well-known insurance providers.
However, from Q4 2024, the decrease in insurance premiums appears to have given smaller providers more power to compete. The win/loss trend has now reversed with insurance providers outside of the Top 10 seeing a 30% rise in policies gained from their bigger rivals, in H1 2025 alone.
Given indications that premiums may soon start to rise, the Top 10 may reassert themselves and work to overtake the rest of market in net policies won.
motor policies won by the Top 10 insurance providers from the rest of the market in H1 2025
Motor policies lost to the rest of the market by the Top 10 insurance providers in H1 2025
Analysis of policy cancellations from some of the Top 10 motor insurance providers suggests that in H1 2025 policies were less likely to be cancelled within the first three months, indicating stronger risk selection and more consistent customers.
While overall insurance provider-led cancellations were steady for the insurance companies we analysed in the Top 10, the share of cancellations happening within the first 15 days jumped over 23% in H1 2025, showing faster intervention and better early checks.**
For other insurance providers, an influx of new business pushed cancellation rates up from 4.3% to 4.5%, hinting that some new customers are proving less reliable.*
Fraud-related cancellations fell 11% across the wider market but rose 20% for the Top 10—mostly within the first two weeks of policy inception. These major insurance providers cancelled policies for fraud two and half times more often than smaller rivals, pointing to stronger, earlier fraud detection.
With living costs still high, cancellation rates for smaller insurance providers are expected to stay elevated into 2026.
*This excludes cancellations during the initial 14 day “cooling off” period.**Where cancellation reason was supplied.
lower cancellation rates in the first three months of a policy for the Top 10 insurance providers, compared to the rest of the market in H1 2025
increase in rate of cancellations between Q4 2024 and Q1 2025 for the rest of market insurance providers
Current state of playThe average value of cars insured in the U.K. has dropped by almost £500 in the past two years—from £11,000 in H2 2023 to around £10,500 in H1 2025. This mirrors a four-month rise in average vehicle age, as cost-of-living pressures and ongoing economic uncertainty kept drivers holding on to their cars for longer.
Interestingly, while cars on the road are getting older overall, brand-new vehicles (less than one year old) now make up a slightly larger share of insured vehicles—up from 2.6% in late 2023 to 3.1% in H1 2025. Lower interest rates and easier-to-obtain finance options may have helped some buyers upgrade.
Seasonal registration cycles remain clear in the data—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.
Looking forwardWith inflation (CPIH) remaining high and with limited room for further interest rate cuts, these trends are expected to continue into 2026.
increase in age for the average vehicle in the U.K. car parc between H2 2023 and H1 2025
average vehicle value drop in the U.K. car parc between H2 2023 and H1 2025
While motor insurance premiums continued falling in the first half of 2025, that decline has slowed in recent months. With repair costs and theft rates on the rise, claims costs are climbing—and premiums may not stay low for long.2
The premium easing favoured smaller insurance providers, who gained share at the expense of the Top 10 in H1 2025. That advantage may prove short-lived if inflation and higher claims costs begin to feed through to pricing.
At the same time, economic pressures have led to an older, lower-value U.K. car parc, as more drivers hold on to their vehicles for longer. With interest rate cuts stalling and household budgets still under strain, that pattern looks set to continue into early 2026.
Consumer shopping and switching activity in motor insurance has settled below its 2024 peak, as premiums continue to reduce and stabilise. This increased market stability has led to a significant change in dynamic for policy wins. The Top 10 insurance providers have been losing out to the rest of the market for the first time in more than two years. There are some early signs however that this situation could change once again in 2026, as motor claims costs remain high. 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 £500. In today’s tough motor market, insurance providers that harness data intelligently to refine pricing, sharpen risk selection, and detect fraud will be best placed to thrive.
1. CPIH Annual Rate Trends - ONS2. https://www.abi.org.uk/news/news-articles/2025/7/motor-premiums-fall---but-repair-and-theft-costs-keep-revving-up-claims/3. LexisNexis Risk Solutions internal study4. https://www.intactinsurance.co.uk/press-releases/2023/intact-financial-corporation-and-rsa-announce-exit-from-uk-personal-lines-motor-market https://www.zurich.co.uk/news-and-insight/david-nichols-reflects-on-zurich-personal-lines-pivot https://www.insuranceage.co.uk/broker/7952525/covea-exits-high-net-worth-motor-line
