Jennifer Rudden
Research Lead Financial Services & Real estate
Motor insurance in the United Kingdom - statistics & facts
There are more cars registered in England, Wales, and Scotland every year, which means that the motor insurance market also continues to grow. In 2021, there were over 31 million cars registered in Great Britain. With so many vehicles on the roads, it is not difficult to see why there were numerous claims from accidents. Motor insurance companies paid out nearly 13.5 billion British pounds in claims in 2020. Motor insurance provides coverage for the accidental loss or damages to an individual’s vehicle, or for the damages and losses of a third party by the insured vehicle.
Household spending on motor insurance
Household expenditure on motor insurance refers to the amount paid by a single household to their car insurance company for vehicle coverage. Household spending on motor insurance has decreased in recent years and has remained below three billion British pounds since 2017. In 2020, this equated to around 11 British pounds spent per week by households on car insurance that year. Typically, younger persons pay higher premiums for motor insurance and it can be seen that in 2020, households where the reference person was below the age of 30 years spent more on car insurance than households where the reference person was older.The impact of fraudulent claims on the cost of car insurance
Motor insurance premiums are affected by a number of reasons relating to the individual, including age, gender, and even where they live. In addition, a factor that may affect motor insurance costs could be uninsured drivers as well as motor insurance fraud. In 2020, there were around 55,000 fraudulent motor insurance claims made – significantly higher than other types of insurances.
