GlobalData analysis reveals that youthful shoppers within the UK usually tend to maintain pay-as-you-go (PAYG) or usage-based (UBI) automobile insurance coverage insurance policies. Nonetheless, the newest Shopper Intelligence Automotive Insurance coverage Value Index signifies that this group is going through rising premiums, with stories suggesting telematics suppliers have gotten much less keen to supply aggressive charges to youthful drivers.
GlobalData’s 2024 UK Insurance coverage Shopper Survey reveals that 14.4% of shoppers aged 18 to 24 have a PAYG or UBI automobile insurance coverage coverage. That is considerably increased than the two.8% of shoppers aged 25 and over. The findings spotlight the stronger attraction of telematics and versatile insurance coverage fashions amongst youthful drivers, who are usually extra cost-conscious and open to alternate options to conventional insurance policies. Against this, uptake amongst older shoppers stays very restricted.
UK drivers with PAYG/UBI automobile insurance coverage insurance policies by age group, 2024
In the meantime, the newest Shopper Intelligence Automotive Insurance coverage Value Index reveals that quoted premiums within the UK have fallen by 10.5% over the previous yr. Nonetheless, drivers below the age of 25 have skilled the alternative development, with premiums rising by 3% in Q2 2025, whereas the general market recorded a 1.4% decline. The information highlights that the sharpest will increase are being felt by drivers aged 17 to 19. On the identical time, telematics suppliers that monitor driving behaviour look like displaying much less urge for food for providing aggressive charges to this group.
Regardless of youthful drivers going through rising premiums and stories that telematics suppliers are displaying much less curiosity in providing aggressive charges to this group, they continue to be extra probably and extra keen to have interaction with this expertise. Insurers ought to recognise this openness by persevering with to spend money on telematics propositions tailor-made to youthful shoppers. Doing so might help strengthen model loyalty, enhance danger evaluation via data-driven insights, and place insurers to seize long-term worth from this section as their insurance coverage wants evolve.
Total, the findings recommend that youthful drivers stay a key viewers for telematics and UBI. Whereas youthful prospects proceed to face challenges round affordability and restricted competitiveness in pricing, their willingness to undertake new fashions highlights a possibility for insurers to adapt their propositions and construct stronger, long-term relationships with this section.
