Motor switching slows

Motor insurance switching fell to its lowest level since early 2023 during the second half of 2025, as easing premiums reduced the incentive for consumers to shop around, according to the latest Insurance Demand Meter UK from LexisNexis Risk Solutions.

The report found that just 21% of motorists who shopped for cover during the fourth quarter of 2025 switched insurer – the lowest level recorded since the first quarter of 2023. Across the year, around 17,000 fewer consumers per day searched for motor insurance compared with 2024, although shopping activity increased slightly during the final quarter.

The research also highlights a changing vehicle landscape that is creating new challenges for insurers. The average value of insured vehicles fell by almost £1,000 between the second half of 2023 and the second half of 2025 to around £10,000, while the average age of vehicles on UK roads increased by around five months to 10 years and five months.

At the same time, Chinese vehicle manufacturers continued to expand their presence in the market. Their share of personal lines motor insurance policies doubled from 0.6% in 2022 to 1.2% by the end of 2025, with market share increasing throughout the year.

Tom Lawrie-Fussey, Associate Vice President of Insurance Product Management, UK and Ireland at LexisNexis Risk Solutions, said: “Chinese vehicle manufacturers continue to expand their footprint across the UK market. For the insurance industry, this can create challenges where limited historical claims and repair data is available. In response we’re seeing an increasing demand for vehicle-level insights at the point of quote and claim, including intelligence about advanced driver assistance systems features that can help insurers assess risk, repairability and potential claims costs.

“At the same time, the market is insuring older cars with depreciating values. Knowing the status, maintenance history and real-time value of these vehicles is central to fair policy pricing and customer transparency throughout the insurance claims process.”

He added that, as pricing pressures continue to increase, insurers will need increasingly granular vehicle data to ensure policies are accurately priced and customers receive the best possible claims outcome.