A driver’s exposure to hazards, such as being in an accident involving another vehicle, causing damage to someone else’s property, inadvertently harming their own vehicle, and becoming a victim of theft, can be financially protected by an auto insurance policy.
Policies can offer compensation for monetary losses and expenses as well as cover medical bills and other financial obligations, including those owed to third parties.
Unless they register their vehicle as “off road” by requesting a Statutory Off Road Notification (SORN) from the Driver and Vehicle Licensing Agency (DVLA), automobile insurance is a legal obligation for all car owners.
For personal vehicles and business and commercial vehicles, there are two primary types of coverage offered.
Compare Quotes for Auto Insurance
Select from a variety of policy options to get reasonably priced coverage that works for you and your vehicle.
What is the value of the UK market for auto insurance?
At present, the motor vehicle insurance market is worth £19.9 billion. Based on the most recent data from researcher IBISWorld, it decreased by 4.1% annually on average between 2018 and 2023 from £23.6 billion.
Most insurers experience a loss on their automobile insurance underwriting activities, regardless of the size of the market. Rather, they generate revenue in other domains by providing their clients with supplementary services like household, vacation, or animal insurance, according to the industry association Association of British Insurers (ABI).
Insurance companies can increase their vehicle insurance profits by providing their policyholders with optional products and services like breakdown assistance and legal defense.
important participants in the UK auto insurance market
As of September 2022, the vehicle insurance market is made up of 195 companies, according to analyst Statista.
The market shares of the top 10 providers for the last three years (2021–2023) are displayed in the following table. Currently, these ten categories make up about 70% of the market.
| Provider | 2021 | 2022 | 2023 |
|---|---|---|---|
| Admiral Group (Admiral, Bell, Diamond, elephant.co.uk, Gladiator) | 15.70% | 14% | 11.28% |
| Aviva (Aviva, Quotemehappy, One Call) | 10.80% | 11% | 10.56% |
| Direct Line Group (Direct Line, Churchill and Darwin) | 11.60% | 11% | 10.22% |
| Hastings | 7.50% | 7% | 6.85% |
| LV= | 8.70% | 6% | 6.61% |
| RSA | 3.20% | 4% | 6.52% |
| AXA | 12.60% | 6% | 6.26% |
| NFU Mutual | 4.30% | 4% | 4.17% |
| esure (Sheila’s Wheels, esure) | 5.30% | 4% | 3.87% |
| Ageas | 4.80% | 4% | 3.74% |
