GlobalData surveying has found that while traditional insurers remain the primary distribution channel for UK motor insurance, a range of alternative digital and automotive-linked channels are also used by consumers. As insurers explore embedded partnerships and digital distribution models, understanding how customers currently access cover remains critical for assessing potential future shifts in distribution strategy.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey indicated that 60.2% of UK motor insurance customers purchased cover from traditional insurance company / insurance agents and 16.6% from digital-only insurers; demonstrating the presence of app-based and platform-driven providers within the market. Automotive-linked distribution also accounts for a notable share, with 8.9% purchasing insurance via care dealers and 8.2% via car manufacturers, which indicates that some consumers already obtain insurance through vehicle-related touchpoints. Smaller proportions purchased cover through repair centers (2.4%) or other channels (3.6%), while traditional insurers and brokers continue to account for the majority of policies.
Recent industry developments reflect insurer interest in these alternative distribution routes. Cuvva and Toyota have launched a short-term motor insurance proposition providing digitally accessed temporary cover for drivers. The partnership combines Cuvva’s app-based insurance platform with Toyota Insurance’s automotive distribution capabilities; illustrating how embedded insurance models can integrate cover more closely into vehicle ownership and usage journeys.
For insurers, the presence of digital-only providers and automotive distribution channels alongside traditional insurers highlights the importance of maintaining flexible distribution strategies. Partnerships with manufacturers, dealers, and digital platforms may provide additional routes to market, particularly for short-term or usage-based products. At the same time, traditional insurers retain a dominant position, which suggests that embedded and digital models currently complement, rather than replace, distribution channels.
“Car dealers and manufacturers emerge as alternative channels for UK motor cover” was originally created and published by Life Insurance International, a GlobalData owned brand.
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