Some interesting predictions for 2025, with a specific focus on the Motor market;
The motoring industry in the UK has seen a notable surge in temporary car insurance policy purchases, award-winning temporary insurance providers GoShorty saw a 50% increase in policy sales in 2024 compared to 2023.
The global insurance industry also has a projected growth rate of 16.7%, with Europe, in particular, having the fastest-growing market in the world. This reflects the growing demand for flexible and short-term cover options, as annual policy prices, fuel duty rises, tax increases and maintenance costs continue to price drivers off the road.
Experts at GoShorty have analysed internal data and external market research to predict five key motoring trends to watch in 2025.
Founder and Managing Director of GoShorty, Andy Moody, commented:
“We continue to evolve in line with the demands of our customers and the industry as a whole. It’s clear the demand for temporary insurance is maintaining growth, whether that be down to drivers wanting weekend cover for a road trip, or employees needing cover for a business trip, we’re here to provide a flexible, affordable option for those who need it.
“Sustainability is also a major factor that all UK businesses must consider as we head into the future. We recognise the need for a more sustainable business, embracing the challenge as we aim to improve our net-zero efforts to allow our practices to continue responsibly. These trends and more have informed what we think the future holds for the industry, so let’s discuss what we think is set to come in 2025…”
5 Predicted Trends for 2025
Higher Demand for Business Cover
Matt Wood, Director of Data and Pricing, has noticed an increased demand for temporary business cover:
“Our YoY sales reflect a 120% increase for policies for ‘business use’, our second largest increase behind policies sold for ‘test drive’. Due to hybrid working models being commonplace throughout the UK now, more workers are relying on their personal vehicles for business trips. As the industry faces challenges with inflation, there is a need for a more flexible, affordable option for drivers needing cover for business trips and we expect this demand to continue into 2025.”
Weekend-Driven Insurance Models
Matt also commented on the increase in weekend-specific policies sold throughout the year:
“Our internal data shows that one-day policies are most popular on Saturdays , two-day policies are most popular on Fridays and Saturdays, and three-day policies are most popular on Fridays.
This data shows that many drivers opt for weekend-specific insurance policies, reflective of an increase in demand for flexibility and shifts in how drivers use and insure their vehicles. This change is potentially inspired by the rise of working from home, whereby drivers no longer need to commute on a regular basis, meaning that weekend travel – whether for errands or leisure – is becoming increasingly popular. Our temporary insurance models are perfectly suited to meet this demand through the provision of cost-effective and convenient cover that adapts to the needs of modern drivers. As a result, we’re making it easier than ever to drive safely and efficiently, whether it’s a weekend trip or a road trip for the day, with our policies spanning an hour to 28 days.”
Personalisation Through AI and Data
Phil Evans, Commercial Director, discusses the importance of tailoring a customer’s journey:
“Leveraging advanced data analytics ensures that we can tailor our temporary insurance offering to meet each driver’s unique needs, from length of policy to cover options, offering adaptability for everything from hourly to longer-term cover. Artificial Intelligence (AI) streamlines the application process, ensuring our customers benefit from quick, accurate quotes and receive a seamless journey from purchase to getting on the road. In addition, personalising data helps to bolster customer satisfaction and enables us to provide smart solutions that align with modern driving habits and needs, such as a rise in car sharing, short-term vehicle loans and flexible working arrangements, which our insurance facilitates.
“Personalised data also helps our customers to buy again in less than 30 seconds thanks to proactive notifications and our Your GoShorty service, all helping to keep our customers moving with the minimum of hassle.”
Zero-Emission Efforts
Founder and Managing Director, Andy Moody, highlights the need for a sustainable future:
“GoShorty is passionate about supporting and facilitating zero-emission efforts, empowering our drivers to regularly make environmentally conscious decisions, such as car sharing. As a leading provider of temporary car insurance, we recognise our role in driving change within the motoring industry, which is why we offer policies to both electric and hybrid vehicle users, with electric vehicle policies increasing by 167% YoY.”
Young Driver Growth
Matt has also noticed an increase in younger drivers embracing temporary insurance:
“With the cost of living driving up the price of public transport, there is an increased number of young people embracing driving, especially as a milestone of independence. Our internal data reveals under 30s purchasing temporary insurance has grown by 97% YoY, while the average learner insurance duration is 7 days and 25% of customers buy more than one policy.
With temporary car insurance acting as an affordable, flexible option, our policies are attractive to young drivers, such as learners, as they offer a cost-effective and short-term solution to be utilised on an ‘as and when basis’ – perfect for those requiring vehicles on a sporadic basis. In fact, our biggest growth area in terms of driver age is the Under 30s, with 97% growth YoY.”
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