UK Motor Insurance Market Overview

​Market Size in 2024: USD 29.3 Billion

Market Forecast in 2033: USD 43.5 Billion

Market Growth Rate (2025-2033): 4.3%

The UK Motor insurance market size reached USD 29.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 43.5 Billion by 2033, exhibiting a growth rate (CAGR) of 4.3% during 2025-2033.

UK Motor Insurance Market Trends and Drivers:

Motor insurance is a must-have for all drivers in the UK, providing essential financial protection against accidents and damage while on public roads. There are three primary types of motor insurance you can choose from:

Third-Party Only (TPO): This is the bare minimum required by law, covering any injury or damage you cause to others, but it won’t cover your own vehicle or medical costs.

Third-Party, Fire and Theft (TPFT): This option includes TPO coverage and adds protection in case your vehicle is stolen or damaged by fire.

Comprehensive: This is the most extensive coverage available, encompassing all the benefits of TPO and TPFT, plus it protects your own vehicle, even if you’re the one at fault.

Several factors can influence your motor insurance premiums. These include your age, driving experience, occupation, driving history, and the make and model of your vehicle. Additionally, where you park your car and how much you drive each year can also impact the cost. Telematics insurance, often referred to as black box insurance, tracks your driving habits and can help lower premiums, especially for younger or new drivers.

UK Motor Insurance Market News 

July 2025 – The UK Financial Conduct Authority (FCA) issued warnings to major insurers, including Aviva and Admiral, over unfair "double-dip" charges raising base premiums for monthly-payment customers and applying financing interest. The FCA said it will scrutinize insurers with no transparent justification for this pricing practice.

July 2025 – Belgian insurer Ageas completed a £1.3 billion acquisition of UK-based Esure (owner of Sheilas’ Wheels and First Alternative), creating the UK’s third-largest motor and home insurer. The takeover is expected to generate over £100 million in cost synergies and will close in the second half of 2025, subject to regulatory approval. 

March 2025 – Average comprehensive car insurance premiums fell dramatically by 17%, from £941 to £777 the largest annual drop since 2014 driven by easing claims inflation, lower frequency, and stabilization of used-car values. 

January 2025 – New regulation lowering the personal injury discount rate from −0.25% to +0.5% went into effect, reducing compensation payouts. Premiums are expected to fall by around £50 (5%) as a result. 

2024 – UK motor insurers returned to profitability after years of losses. EY forecast a combined ratio (CR) of ~93% for 2024 but cautioned that profitability would narrow in 2025, with CR projected to rise to ~101.6% amid rising claims inflation and flat-to-falling premiums. 

January 2025 – The expansion of 20 mph zones in cities like London and parts of Wales contributed to a ~16% (£161) drop in insurance premiums, reaching an average of £834 the lowest in 18 months. Younger drivers saw the biggest cost savings. 

For an in-depth analysis, you can refer sample copy of the report: 

https://www.imarcgroup.com/uk-motor-insurance-market/requestsample               

UK Motor Insurance Market Industry Segmentation:

Policy Type Insights:

• Liability Insurance
• Comprehensive Coverage
• Collision Coverage
• Personal Injury Protection

Premium Type Insights:

• Personal Insurance Premiums
• Commercial Insurance Premiums

Distribution Channel Insights:

• Insurance Agents/Brokers
• Direct Response
• Banks
• Others

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Ask Our Expert & Browse Full Report with TOC & List of Figure: 

https://www.imarcgroup.com/request?type=report&id=24512&flag=C              

Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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