United Kingdom Car Insurance Market Introduction and Overview
According to SPER Market Research, the United Kingdom Car Insurance Market is estimated to reach USD 34.42 billion by 2033 with a CAGR 5.75%.
The report includes an in-depth analysis of the United Kingdom Car Insurance Market, including market size and trends, product mix, distribution channels, and supplier analysis. Car insurance is a type of financial policy that shields drivers from incurring losses due to theft, accidents, or other unanticipated circumstances concerning their cars. Typically, it pays for costs such car repairs, medical bills for injuries to drivers or passengers, and liability claims against the policyholder for injuries or property damage caused by the insured vehicle to other individuals. Based on variables such the driver's age, driving record, region, and the kind of vehicle insured, auto insurance policies can differ significantly in terms of coverage options and prices.
- Feb 2022: Ageas UK's commercial operations' renewal rights were acquired by AXA UK&I for an initial payment of GBP 47.5 million. This acquisition strengthens AXA's commitment to its broker alliances and commercial company clients, especially in the SME and Schemes market sectors, as well as its expansion plan. As part of the agreement to continue support and service delivery, some 100 employees of Ageas UK will transition to AXA Commercial.
- Jan 2022: British consumers should expect erratic premiums for comprehensive auto insurance this year, following a 5% increase in the last quarter of 2021 as more people went to the roads in an effort to circumvent COVID-19 restrictions. For their comprehensive auto insurance, drivers must pay an average premium of GBP 539 (USD 734.06).
Market Opportunities and Challenges
Opportunities: Usage-based or telematics-based motor insurance is rapidly being adopted by the insurance industry. The Telematics system provides real-time data by tracking the vehicle with GPS and onboard diagnostics. It measures one's driving style and helps insurance companies determine risk. With the advent of digitally enabled car insurance products, auto insurers can now reach a larger worldwide customer base and gain a deeper understanding of their needs.
Furthermore, Due to the availability of numerous incentives and discounts for buyers who choose electric vehicles, it resulted in a notable growth in EV sales. The upward trend in EV sales was mostly due to these incentives. The UK set lofty goals to phase out the sale of new gasoline and diesel vehicles over the following six years. The regulation modifications incentivized consumers to contemplate eco-friendly and sustainable modes of transportation, hence augmenting the sales of electric vehicles.
Challenges: In today's world of 7.8 billion people, there are an increasing number of accidents, traffic crashes, and wrecks every day. Each of these factors has a major impact on the cost of auto insurance rates. For example, people living in large cities are willing to pay a significant premium since they have a lot of discretionary cash. In every city, there is a problem with people texting, talking on the phone, or doing other things while driving, and it could be the primary cause of accidents. Auto insurance covers injuries, medical costs, missed wages, car repairs, and property damage in the event of an accident. In order to avoid financial losses, people are purchasing auto insurance, which will raise demand for it over the course of the analysis period.
Market Competitive Landscape
In the UK, there is a small number of dominant significant players in the highly concentrated vehicle insurance market. The top 10 vehicle insurance companies in the UK account for more than 70% of the market share, despite the fact that there are over 195 distinct carriers. Personal and third-party liability insurance are among the many auto insurance options being made available to vehicle owners as a result of technological advancements and product innovation in the market. Admiral Group, Direct Line Group, Aviva, Hastings, and AXA are a few of the current participants in the UK auto insurance market.
Scope of the Report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Product Type, By Channel
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| Regions covered | Eastern, Western, Southern, Northern
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| Companies Covered | Admiral Group, Ageas, Aviva, Axa, Direct Line Group, Esure, Hastings, LV= General Insurance, NFU Mutual, and others.
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COVID-19 Impact on United Kingdom Car Insurance Market
The UK's rapid COVID-19 pandemic outbreak at first had a negative effect on the growth of the auto insurance industry in that nation. Due to declining customer purchasing power and transportation issues, sales of both private and commercial automobiles decreased precipitously. The market is anticipated to grow after COVID-19 because of the potential spike in demand for private vehicles brought on by worries about safety and social distance. Insurtech and financial services that facilitate easy access to auto insurance through business websites and banking establishments are also helping the motor insurance sector.
Key Target Audience:
- Young Drivers
- Experienced Drivers
- Families
- Urban Dwellers
- High-Value Vehicle Owners
- Low-Mileage Drivers
- Business Owners
Our in-depth analysis of the United Kingdom Car Insurance Market includes the following segments:
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By Product Type:
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Third-Party
Third-Party Fire and Theft
Comprehensive
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By Channel:
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Direct
Agency
BanksOther
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Key Topics Covered in the Report:
- United Kingdom Car Insurance Market Size (FY’2024-FY’2033)
- Overview of United Kingdom Car Insurance Market
- Segmentation of United Kingdom Car Insurance Market By Product Type (Third-Party, Third-Party Fire and Theft, Comprehensive)
- Segmentation of United Kingdom Car Insurance Market By Channel (Direct, Agency, Banks, Others)
- Expansion Analysis of United Kingdom Car Insurance Market
- Problems and Obstacles in United Kingdom Car Insurance Market
- Competitive Landscape in the United Kingdom Car Insurance Market
- Impact of COVID-19 and Demonetization on United Kingdom Car Insurance Market
- Details on Current Investment in United Kingdom Car Insurance Market
- Competitive Analysis of United Kingdom Car Insurance Market
- Prominent Players in the United Kingdom Car Insurance Market
- SWOT Analysis of United Kingdom Car Insurance Market
- United Kingdom Car Insurance Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst