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.

Context

The company has shared its annual car insurance data. Now, you have to find out the real customer behaviors over the data.

Content

The columns are resembling practical world features. The outcome column indicates 1 if a customer has claimed his/her loan else 0. The data has 19 features from there 18 of them are corresponding logs which were taken by the company.

Acknowledgements

Mostly the data is real and some part of it is also generated by me.

Inspiration

The data is so well balanced that it will help kagglers find a better intuition of real customers and find the deepest story lien within it.

One of the perceived future benefits of buying insurance online, other than more individualized policies, faster processing and risk assessment and a better overall customer experience is that, with the use of digital data, average premiums for individuals will fall. One way in which insurtech companies are looking to improve on mitigating risks and enhancing customer experience in the motor insurance industry is through telematics. Telematics is an offset of information technology that deals with the transmission of digital computerized information. Already, motor insurance is becoming less about customer demographics but by individual behavior, using real time data collected from your vehicle. Where and when you drive, what the traffic is like where you drive, how fast and often you drive are some of the data points that can determine how much you will pay for car insurance in the near future. Statista estimates that the overall average cost of online premiums for motor insurance will decrease between 2018 and 2024. To learn more about the future of the B2C digital insurance industry in the UK, read our in-depth report.

The United Kingdom Car Insurance Market is Segmented by Coverage Type (Third-Party Liability, Collision/Comprehensive, and More), Application (Personal, Commercial), Distribution Channel (Direct-To-Customer, Intermediated, and Embedded), Vehicle Powertrain (Internal-Combustion, Battery Electric, and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

Statista estimates that the future of buying car insurance in the United Kingdom will be dominated by online sales. Price comparison websites are particularly popular with UK consumers, with the leading five online insurance groups (share of voice) being aggregator websites. By 2024, it is estimated that ********** of the total value of motor insurance premiums written will come from online sales. To learn more about the future of the B2C digital insurance industry in the UK, read our in-depth report.

In 2024, the leading ten motor insurers in the United Kingdom (UK) accounted for about ** percent of the total UK market. Admiral Group, which includes Admiral, Bell, Diamond, elephant.co.uk, Veygo, and Gladiator, had the highest market share at ** percent. This was followed by Aviva and the Direct Line Group at ** percent market share. After Germany and France, the UK is the third-biggest motor insurance market in Europe. Motor insurance in the UK In the United Kingdom, it is mandatory to have motor insurance to drive a vehicle on UK roads. Motor insurance covers the costs incurred if one is in an accident which causes injury to oneself, another person or animal, or causes damage to one’s own or another’s vehicle or property. In 2018, the vast majority of households in the UK had motor insurance. As of 2019, gross premiums written on motor insurance in the UK amounted to over ** billion euros. Motor insurance industry in Europe Home to one of the world’s leading insurance markets, Europe’s motor insurance industry is also quite extensive. As of 2019, total motor premiums written on the European insurance market amounted to a value of over *** billion euros. At that time, Germany had the highest value of total motor claims expenditure paid on the insurance market in Europe, with claims paid amounting to about ** billion euros.

Autobi(Automobile Bodily Injury Claims) -

The data contains information on demographic information about the claimant, attorney involvement and the economic loss (LOSS, in thousands), among other variables.The full data contains over 70,000 closed claims based on data from thirty-two insurers.

A data frame with 1340 observations on the following 8 variables.

CASENUM- Case number to identify the claim, a numeric vector ATTORNEY- Whether the claimant is represented by an attorney (=1 if yes and =2 if no), a numeric vector CLMSEX - Claimant's gender (=1 if male and =2 if female), a numeric vector MARITAL- claimant's marital status (=1 if married, =2 if single, =3 if widowed, and =4 if divorced/separated), a numeric vector CLMINSUR- Whether or not the driver of the claimant's vehicle was uninsured (=1 if yes, =2 if no, and =3 if not applicable), a numeric vector SEATBELT- Whether or not the claimant was wearing a seatbelt/child restraint (=1 if yes, =2 if no, and =3 if not applicable), a numeric vector CLMAGE- Claimant's age, a numeric vector LOSS- The claimant's total economic loss (in thousands), a numeric vector

AutoClaims(Automobile Insurance Claims) -

A data frame with 6773 observations on the following 5 variables.

STATE CLASS - Rating class of operator, based on age, gender, marital status, use of vehicle GENDER AGE - Age of operator PAID - Amount paid to settle and close a claim

AutoCollision(Automobile UK Collision Claims)

8,942 collision losses from private passenger United Kingdom (UK) automobile insurance policies. The average severity is in pounds sterling adjusted for inflation.

A data frame with 32 observations on the following 4 variables.

Age - Age of driver Vehicle_Use - Purpose of the vehicle use Severity - Average amount of claims Claim_Count - Number of claims

Additional information can be found in the document: https://cran.r-project.org/web/packages/insuranceData/index.html

Operators in this industry provide both private passenger and commercial insurance coverage. Motor vehicle insurance covers the insured party for any loss incurred through damage to property or person as the result of a car accident, including theft.

The United Kingdom Motor Insurance Market is Segmented by Coverage Type (Third-Party, Comprehensive and More), Vehicle Type (Passenger Cars, and More ), End-Users (Individual, and More), Distribution Channel (Direct, and More), Purchase Mode (Online, and More), Technology (Traditional, Usage-Based, and More), Claims Type (Own Damage, Third-Party Liability), and Region. The Market Forecasts are Provided in Terms of Value (USD)

Motor insurance claims paid in the United Kingdom (UK) peaked in 2024. In 2024, approximately 11.7 billion British pounds were paid in motor insurance claims by insurance companies on the domestic market. This was an increase from the previous year when motor insurance claims amounted to 9.9 billion British pounds.

Snapshot img

Motor Vehicle Insurance Market Size 2024-2028

The motor vehicle insurance market size is forecast to increase by USD 545.9 billion, at a CAGR of 10.44% between 2023 and 2028.

The market is experiencing significant shifts driven by increasing government regulations on mandatory insurance coverage in developing countries and the digitalization of the industry. These factors are shaping the market's strategic landscape, presenting both opportunities and challenges for insurance players. Government regulations in developing countries are pushing for mandatory insurance coverage, expanding the potential customer base for motor vehicle insurers. This trend is particularly noticeable in Asia Pacific and Latin America, where economic growth and urbanization are leading to increased car ownership. However, this regulatory environment also tightens the competitive landscape, as more players enter the market and compliance becomes a priority.
Simultaneously, the digitalization of the motor vehicle insurance industry is transforming the way insurers engage with customers and manage risk. Digital platforms enable real-time underwriting, claims processing, and customer service, enhancing the overall customer experience. However, this digital shift also brings challenges, such as data security concerns and the need for robust IT infrastructure. To capitalize on opportunities and navigate challenges effectively, insurers must stay abreast of regulatory changes and invest in digital capabilities.

What will be the Size of the Motor Vehicle Insurance Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, shaped by dynamic market forces and advancements in technology. AI-powered claims processing streamlines underwriting and settlement negotiations, while digital insurance platforms offer convenience and personalized pricing. Data analytics and credit scoring inform risk assessment and customer segmentation, shaping insurance regulations and product offerings. Collision coverage and liability limits are subject to ongoing adjustments, influenced by factors such as driving record and insurable interest. Third-party administrators (TPAs) and legal counsel facilitate dispute resolution, ensuring regulatory compliance and comparative negligence assessments. Fraud detection and independent verification are essential components of claims processing, with advanced predictive modeling and accident reconstruction techniques aiding in claims investigation and policy administration.

How is this Motor Vehicle Insurance Industry segmented?

The motor vehicle insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Personal
  Commercial


Distribution Channel

  Brokers
  Direct
  Banks
  Others


Vehicle Age

  New Vehicles
  Old Vehicles
  New Vehicles
  Old Vehicles


Coverage Type

  Liability Insurance
  Collision Insurance
  Comprehensive Insurance


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

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

Motor vehicle insurance is a crucial financial protection for vehicle owners and drivers. The insurance policy, which is a compulsory requirement under the Motor Policy, offers coverage for both comprehensive and third-party liability packages. Personal insurance, an optional add-on cover, safeguards the owner or driver against accidental injuries. Insurance agents and brokers play a significant role in advising clients on coverage limits and policy options. Actuarial modeling and predictive analytics are used to assess risk and determine personalized pricing. Liability coverage, including property damage and bodily injury, is a key component of motor vehicle insurance. Fraud detection and independent verification are essential for dispute resolution and maintaining regulatory compliance.

Digital insurance platforms and ai-powered claims processing streamline the claims management process. Data analytics and customer segmentation help insurers tailor policies to individual needs. Usage-based insurance and mobile apps provide real-time data for risk assessment and customer retention. Insurance regulations mandate coverage for medical payments and accident reconstruction, as well as policy administration and claims processing. Policy cancellation, clai

Market Size statistics on the Classic Car Insurance industry in the UK

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.

The size of the United Kingdom Motor Insurance Market was valued at USD 23.44 Million in 2023 and is projected to reach USD 31.18 Million by 2032, with an expected CAGR of 4.16% during the forecast period. Recent developments include: Feb 2022: For an initial payment of GBP 47.5 million, AXA UK&I purchased the renewal rights to Ageas UK's commercial operations. This acquisition reinforces AXA's growth strategy and dedication to its commercial business clients and broker alliances, particularly in the SME and Schemes market sectors. About 100 Ageas UK personnel will transfer to AXA Commercial as part of the arrangement to provide continued support and service delivery., Jan 2022: The cost of a comprehensive car insurance policy in Britain is expected to be volatile this year after rising 5% in the final quarter of 2021 as more drivers took to the roads to ease COVID-19 curbs. Motorists must pay GBP 539 (USD 734.06) on average for their comprehensive car insurance premiums.. Key drivers for this market are: Data Privacy Regulations, Business Interruption. Potential restraints include: Complexity and Lack of Understanding, Cost of Coverage. Notable trends are: High Volatility in Car Insurance Premiums During the Past Few Years.

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.

The average annual cost of fully comprehensive motor insurance in the United Kingdom rose in the first quarter of 2023, increasing to *** British pounds. This is ** British pounds more than in the previous quarter, and over ** British pounds more than the average cost in the first quarter of 2022.

Annual underwriting results for every UK regulated motor insurer for the most recent 3 years.

Data on the performance of each insurer has been compiled and calculated from data submitted in annual regulatory returns and includes: - GWP - NEP - Amount reinsured - Net claims - Operating expenses - Loss ratio - Expense ratio - COR

United Kingdom Weekly Household Exp: Avg: MG: Insurance: Vehicle Insurance (VI) data was reported at 9.200 GBP in 2016. This records a decrease from the previous number of 9.500 GBP for 2015. United Kingdom Weekly Household Exp: Avg: MG: Insurance: Vehicle Insurance (VI) data is updated yearly, averaging 9.200 GBP from Dec 2006 (Median) to 2016, with 11 observations. The data reached an all-time high of 9.900 GBP in 2012 and a record low of 7.600 GBP in 2007. United Kingdom Weekly Household Exp: Avg: MG: Insurance: Vehicle Insurance (VI) data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.H023: Average Weekly Household Expenditure.

Considering the three different types presented in this statistics, 'Comprehensive' leads the ranking with **** million people. Contrastingly, 'Third party fire & theft' is ranked last, with * million people.