The latest trends in the car insurance sector, from LexisNexis Risk Solutions;
New analysis of the motor insurance market published in the LexisNexis® Insurance Demand Meter U.K. for H2 2025 highlights the pressure on insurance providers to adapt pricing and risk strategies to a rapidly changing vehicle landscape. Among the report’s findings, LexisNexis® Risk Solutions found that Chinese car brands represented 1.2% of personal lines insurance policies at the end of 2025, up from 0.6% in 2022. Meanwhile, the average value of vehicles insured in the U.K. continued to decline, reflecting an ageing car parc as many motorists held on to vehicles for longer amid ongoing cost-of-living pressures.
These trends occurred against a backdrop of continued moderation in motor insurance shopping and switching activity as premiums eased during 2025.
Key Findings from H2 2025:
• Approximately 17,000 fewer consumers per day shopped for motor insurance in 2025 compared with 2024, although shopping activity increased slightly in Q4 2025, with around 1,000 more daily shoppers than in Q4 2024.
• Just 21% of consumers shopping for motor insurance switched provider in Q4 2025 — the lowest level recorded since Q1 2023.
• The average value of a U.K. vehicle fell by almost £1,000 between H2 2023 and H2 2025 to approximately £10,000, while average vehicle age increased by approximately five months between H2 2023 and H2 2025 — from 10 years to around 10 years and 5 months
• Chinese car brands accounted for 1.2% of personal lines insurance policies by end of 2025, up from 0.6% in 2022, with market share increasing consistently quarter on quarter throughout the year.
The LexisNexis® Insurance Demand Meter U.K. provides insight into consumer motor insurance shopping trends, insurer performance and competitive dynamics shaping the U.K. motor insurance market.
The moderation in insurance policy shopping and switching activity during 2025 broadly aligns with falling motor insurance premiums over the year and is consistent with broader inflation index trends over the same period. However, the rising cost of repairs and associated insurance claims inflation, combined with wider inflationary pressures linked to geopolitical uncertainty, prompts a return to insurance premium increases and with them, a renewed uptick in insurance policy shopping and switching behaviour.
The ageing car parc adds another layer of complexity for insurance providers. Older vehicles often feature a broader and less consistent mix of ADAS equipment and require greater maintenance to remain roadworthy, presenting motor insurance underwriters with a different and potentially less predictable risk profile.
Growing consumer adoption of Chinese car brands adds another dimension to this challenge. With new models and new brands entering the U.K. market at an unprecedented rate, insurance providers are being asked to price vehicles for which limited historical claims data exists. This data gap could become increasingly significant as Chinese brands’ share of the car parc continues to grow.
Tom Lawrie-Fussey, associate vice president of insurance product management, U.K. and Ireland, LexisNexis Risk Solutions said: “Chinese vehicle manufacturers continue to expand their footprint across the U.K. market. For the insurance industry, this can create challenges where limited historical claims and repair data is available. In response we’re seeing an increasing demand for vehicle-level insights at the point of quote and claim, including intelligence about ADAS features that can help insurers assess risk, repairability and potential claims costs.
“At the same time, the market is insuring older cars with depreciating values. Knowing the status, maintenance history and real-time value of these vehicles is central to fair policy pricing and customer transparency throughout the insurance claims process.
“As pricing pressures continue to mount, it will become even more critical for motor insurance providers to deploy granular data on vehicles they are insuring to help ensure the product and price is right for the individual risk and that customers get the best outcome in a claim.”
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