UK motor insurance premiums continue to rise at renewal despite strong competition

A GlobalData survey suggests that rising motor insurance premiums continue to place financial pressure on UK consumers, reinforcing concerns that pricing remains a key challenge despite the moderation seen across parts of the market over the past two years.

GlobalData’s 2025 UK Insurance Consumer Survey found that 73.3% of respondents experienced an increase in their motor insurance premium at renewal. While almost half reported an increase of between 0% and 20%, 15.6% saw premiums rise by 21%–40%. A small proportion of consumers even experienced rises exceeding 60%. These findings highlight that although many premium increases were relatively modest, a meaningful share of motorists continue to experience significant cost pressures.

Recent data from Defaqto’s Market Pricing Motor Insurance Price Index indicates that motor insurance prices are beginning to rise again after two years of declines, suggesting that downward pricing pressures may be easing. Ongoing claims inflation, higher repair costs, increasing vehicle complexity, and elevated labor expenses continue to challenge insurer profitability, limiting the scope for sustained premium reductions. As these underlying cost pressures persist, insurers are likely to remain cautious in their pricing strategies despite increased competition across the market.

For insurers, the findings highlight the importance of balancing pricing discipline with customer retention. Although many customers continue to accept modest premium increases, larger price rises risk encouraging policyholders to shop around or seek lower levels of cover. Insurers that can improve claims efficiency, leverage data-driven underwriting, and clearly communicate the reasons behind premium changes will be better placed to retain customers while maintaining underwriting profitability in an increasingly competitive motor insurance market.

“UK motor insurance premiums continue to rise at renewal despite strong competition” was originally created and published by Life Insurance International, a GlobalData owned brand.