Record UK motor insurance shopping as premiums rise

LexisNexis Risk Solutions said its UK Insurance Demand Meter recorded motor insurance shopping at a record level in the first half of 2026. The data also showed that about 78% of policyholders stayed with their existing provider.

An average of 403,000 consumers shopped for motor insurance each day during the period, up about 31,000 a day from the first half of 2025. But the share of policyholders who switched provider was about 22%, broadly unchanged from a year earlier.

The figures point to a market in which more motorists are comparing prices at renewal, while insurers are still retaining most customers. LexisNexis linked the increase in shopping activity to rising premiums. The Association of British Insurers said the average motor premium paid in the second quarter of 2026 reached £566, up 1% from the previous quarter.

Claims costs also remained high. According to the industry body, insurers paid a record £3.2 billion in motor claims in the second quarter.

Regional shifts

Switching rates varied by location. Policyholders in Manchester changed provider at an average rate of 23%, compared with 21% in London, although the gap between the two cities narrowed during the half-year.

LexisNexis said a rise in switching in June across the country, including in London and Manchester, would be a trend to watch as the year progresses. Even so, the first-half data suggests that higher shopping levels do not automatically lead to more switching.

Vehicle mix

The report also highlighted a further shift in the mix of cars entering the UK parc. Hybrid vehicles accounted for 46% of new private car registrations in the first half, while fully electric vehicles made up 24%.

Together, hybrid and electric cars represented 70% of all new private car registrations. Internal combustion engine vehicles accounted for the remaining 30%.

Registrations of internal combustion engine vehicles fell 9% year on year and were down 30% from the first half of 2022. LexisNexis said hybrids moved ahead of internal combustion engine vehicles in late 2024 and have kept that lead since.

The shift matters for insurers because newer powertrains and vehicle systems can affect repair costs and claims patterns. Hybrid and electric vehicles also bring different data requirements for insurers seeking to price policies and assess claims.

Tom Clarke, UK and Ireland Motor Strategy Director at LexisNexis Risk Solutions, said: "Record shopping levels show that UK motorists are increasingly prepared to shop around at renewal in search of better value. This further highlights how important it is to get pricing right at the point of quote. Retention has held up well so far, but if price differences between providers become more pronounced, we could see greater movement in the market in the second half of the year. At the same time, the vehicles being insured are changing quickly. With 70% of new private cars now hybrid or fully electric, insurance providers need accurate, vehicle-level data on powertrain, advanced driver assistance systems and repairability to understand the risk they are pricing and to help ensure customers get the right outcome when they make a claim."

The Insurance Demand Meter is a twice-yearly analysis of shopping and switching behaviour in the motor insurance market, based on consumer shopping transactions and vehicle information handled by LexisNexis Risk Solutions.