In the United Kingdom, younger drivers paid more on average for their car insurance than older drivers in 2024. A driver who is around 20 years old would be charged roughly *** British pounds whereas a driver in their 30s would be charged an average rate of *** British pounds. This higher premium stems from the idea that young drivers engage in more risky driving behavior, such as drunk driving, and therefore pose a higher risk to insurance companies. Young drivers pay more, but also tend to have more coverage Prices of different car insurance cover plans in the UK have increased since early 2022 and exceeded *** British pounds in 2023. Third party, fire and theft plans overall had higher premiums than comprehensive plans. This, however, is because the basket of risks reflects the type of driver that buys such cover, which is typically young drivers.

This statistic shows the average cost of car insurance in the United Kingdom (UK) in British pounds by age group and gender in 2018. The average cost of car insurance for those in their twenties was the highest out of the age ranges with an average of ***** British pounds. On average women pay more for car insurance in the United Kingdom (UK) than men. Women in their twenties paid on average ***** British pounds a year as to ***** British pounds paid by men.

The cost of comprehensive motor insurance in the United Kingdom reached an all-time high in the first quarter of 2024. As of the third quarter of 2024, the average cost of comprehensive motor insurance was approximately *** British pounds. Age also plays a role in the price of car insurance with 20- and 75-year-olds paying the most in 2024.

This table contains values from Compare.com's proprietary database of car insurance quotes about average full coverage car insurance costs by carrier

Throughout the UK there are more than ** million households with car insurance. This unsurprisingly means that there are numerous companies to choose a policy from. In Great Britain, Admiral and Direct Line are the leading car insurance companies, with an estimated *** and *** million plan owners respectively. Insurance claims In 2017 the number of registered cars in Britain increased to a staggering **** million. With some many cars on the road it is inevitable that insurance claims will be made. In 2017, a total of seven billion GBP in motor insurance claims was incurred. In comparison, claims amounted to more than ** billion GBP in 2010. In the same year there was ****** fraudulent motor insurance claims in the UK. Insurance costs There are numerous factors that can affect the cost of motor insurance, such as age. Younger drivers on average paid more for their car insurance than older people, with those in there 20’s paying more than 1,000 GBP. The lowest average insurance cost was for people in their 50’s, however costs increased again for people in their 60’s.

UK car parts wholesalers have faced weak car production – vehicle output falling by 13.9% in 2024. This slowdown has reduced orders for original manufacturer parts. However, rising sales of used cars and an ageing vehicle fleet (with the average vehicle age at 9.4 years) have expanded replacement and repair component sales. Spare part prices have soared, demonstrated by car insurance premiums jumping 82% between 2021 and 2024, translating into higher revenue for wholesalers. Moreover, the market shift towards electric vehicles (EVs), with EV registrations up 16.7% in 2024, means wholesalers face lower demand for traditional engine components but gain opportunities supplying EV-specific parts such as batteries, charging equipment and power electronics. Buyer power is fairly high due to strong competition among parts suppliers, while barriers to entry are moderate because of the capital requirements and specialised technical expertise needed in this industry. That’s why revenue is projected to hike at a compound annual rate of 2.8% to £22.4 billion over the five years through 2025-26, with an expected hike of 1.8% in 2025-26. Revenue is forecast to expand at a compound annual rate of 3.6% to £26.7 billion over the five years through 2030-31. The expanding UK car fleet is driving steady growth in the UK car parts market. Total car sales are forecast to rise by 3.3% to above two million units by 2026, raising long-term demand for replacement parts as vehicles age. Used cars will likely remain popular, raising the average vehicle age on UK roads and boosting ongoing demand for servicing and replacement components for older models. EVs will also form a larger portion of the market. The SMMT expects battery-electric cars alone to make up about 28.3% of total sales by 2026, alongside continued growth in hybrid sales. Government support is helping accelerate this shift – with over £2 billion earmarked from 2024 to expand charging infrastructure. This opens new opportunities for wholesalers to supply higher-value EV-specific parts like batteries, cables and charging gear. However, challenges remain as larger retailers increasingly bypass traditional wholesale channels, pushing wholesalers to diversify their product lines to protect profit.

Snapshot img

UK Used Car Market Size 2025-2029

The uk used car market size is forecast to increase by USD 39.5 billion, at a CAGR of 6.2% between 2024 and 2029.

The Used Car Market in the UK is driven by the excellent value for money proposition that pre-owned vehicles offer, making them an attractive alternative to new cars for many consumers. Another significant trend shaping the market is the increasing preference for car subscription services, which provide flexibility and convenience for customers. However, the market also faces challenges, including the growing importance of digital touchpoints in the car buying process and the need for dealers to adapt and improve their online presence. Additionally, the rise of car subscription services poses a threat to traditional dealership models, requiring dealers to explore new business models and revenue streams to remain competitive. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on enhancing their digital presence, offering flexible and convenient purchasing options, and exploring partnerships with car subscription services.

What will be the size of the UK Used Car Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The used car market in the UK is influenced by various factors, including the exterior and interior condition of the vehicles, financial history, economic trends, and consumer demand. Financially sound buyers prefer cars with well-maintained exteriors and interiors, ensuring lower car ownership costs in the long run. Economic trends, such as inflation and interest rates, impact car financing options and vehicle affordability. Maintaining a vehicle's fuel consumption within acceptable limits and adhering to the vehicle maintenance schedule is crucial for reliable performance and resale value. Financial institutions consider a vehicle's title, accident history, and service records when assessing car financing options. Emerging technologies, such as electric vehicles and autonomous driving, are transforming the industry, while insurance coverage, safety ratings, and vehicle age & mileage remain essential factors in consumer decision-making. Previous owners, engine size & type, transmission options, and vehicle features & equipment also influence consumer preferences. Car repair costs, loan terms, car financing options, and industry innovations contribute to market volatility. Registration documents, vehicle history records, and insurance coverage are essential for transparency and trust. Understanding the impact of these factors on car ownership costs is crucial for businesses operating in the UK used car market.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ChannelOrganizedUnorganizedVehicle TypeCompact carSUVMid sizeSales ChannelDealershipsOnline PlatformsPrivate SalesFuel TypePetrolDieselHybridElectricGeographyEuropeUK

By Channel Insights

The organized segment is estimated to witness significant growth during the forecast period.

The used car market in the UK is characterized by various entities that influence its dynamics and trends. Depreciation and car insurance premiums are significant factors that impact the affordability of used cars. Safety features, a priority for consumers, are increasingly being incorporated into used vehicles through refinishing and upgrades. Car rental companies offer flexible mobility solutions, while automotive technology advances drive the adoption of vehicle diagnostics and digital car retailing. Used car dealerships and online marketplaces facilitate transactions with vehicle inspections, mileage verification, and consumer reviews. Sustainable transportation initiatives and online payment systems are shaping the market, as are car leasing agreements, price elasticity, and inflation rates. Fuel efficiency, car finance options, and driving assistance systems are key considerations for buyers. Government incentives and emissions standards influence consumer spending patterns, with a growing interest in alternative fuel vehicles and hybrid car technology. Fleet management services and car maintenance costs are essential services for businesses and individuals alike. Industry regulations and consumer protection laws ensure transparency and trust in the market. Used car warranty, customer satisfaction ratings, and brand reputation are crucial factors for buyers. The market share dynamics of organized companies, including dealership chains, online marketplaces, and OEM-affiliated dealerships, are shaped by their ability to provide guarantees, technical expertise, and