Individual vehicles insurance

For more on this part of the insurance industry: 

1. visit our Commercial Fleet Insurance page for a look at all products in this sector 
2. or focus in on all of the individual vehicles insurance products available on IB Markets! 

What is individual vehicles insurance? 

Individual vehicles insurance protects private vehicle owners, self-employed professionals, and businesses with a single vehicle from financial losses due to certain incidents. It can cover: 

• accidental damage to the vehicle 
• theft or attempted theft 
• fire damage 
• third-party injury or property damage claims 
• vandalism or malicious damage 

With over 41 million licensed vehicles in the UK, insurance is not just a legal need but also a financial safeguard against costly repairs and claims. 

Why is individual vehicles insurance in the UK important? 

Vehicle thefts rose in 2024 which caused more insurance claims in UK cities. London and Birmingham reported a 30% growth in keyless car thefts.  

This shows the need for full insurance cover. Individual vehicles insurance helps drivers with theft, accidents, and legal claims, keeping them financially secure. 

Individual vehicles insurance: industry trends and emerging risks 

Motor insurers expect higher profits in 2024, with a projected 93% net combined ratio (NCR). More insurers now offer discounts for vehicles with automatic braking and updated software.  

New policies for electric vehicles (EVs) also reflect the industry's shift toward sustainability and changing customer preferences. But brokers must also look at emerging risks, such as: 

• e-scooter offences: illegal e-scooter use adds endorsements (penalty points), driving up individual vehicles’ insurance costs 
• ghost broking: fake policies trick young drivers which can leave them uninsured and at risk 
• 'cash-for-crash' scams: staged accidents targeting vans can lead to false claims and raise premiums 

Brokers must prepare for self-driving cars, as liability issues make insurance policies more complex. Cyber threats targeting insurers are also increasing, which needs stronger data security. 

Individual vehicles insurance FAQs 

Who needs individual vehicles insurance coverage? 

In the UK, motor insurance is legally required for anyone who owns or drives a vehicle on public roads. This includes: 

• private vehicle owners 
• company car users 
• learner drivers 
• motorcyclists 
• classic car collectors 

Vehicles with a Statutory Off Road Notification (SORN) do not need insurance, but only if they are not used on public roads. 

What are common individual vehicles insurance coverage options? 

This insurance offers different levels of cover to meet various requirements. Common options include: 

• third-party only (TPO) 
• third-party, fire, and theft (TPFT) 
• personal belongings cover 
• uninsured driver promise 
• new vehicle replacement 

Brokers can help clients choose the right individual vehicles insurance cover and add-ons for their needs. 

What is SDP in car insurance? 

SDP stands for social, domestic and pleasure. It covers personal use such as shopping, visiting friends, or leisure activities, but does not include commuting or business use.  

Social, domestic, pleasure, and commuting (SDP+C) extends SDP cover to include commuting to a regular workplace. 

What is the lowest form of car insurance? 

The minimum legal requirement for car insurance is TPO. It covers injury to others and damage to their property but does not cover damage to the policyholder’s vehicle or personal injuries. 

Can I drive someone else's car on my insurance? 

Most insurance policies don’t automatically cover driving another car. Some comprehensive policies include 'driving other cars' (DOC) cover, but it’s usually third-party only.  

Always check the individual vehicles insurance policy before driving. 

Does temporary car insurance cover borrowing a car? 

Yes, temporary car insurance can provide full cover for a few hours, days, or weeks. It’s a better option than DOC if full protection is needed. 

How can I reduce my individual vehicles insurance cost in the UK? 

Consider the following strategies below to lower the individual vehicles insurance cost: 

1. pick a car in a lower insurance group: cars in lower groups cost less to insure 
2. increase voluntary excess: a higher excess can lower insurance premiums 
3. install approved security devices: alarms and immobilisers reduce theft risk and lower costs 
4. limit annual mileage: fewer miles driven can decrease premiums 
5. consider telematics or 'black box' policies: safe driving with telematics may reduce costs 
6. build up a no-claims discount: more claim-free years lead to bigger discounts 
7. pay annually instead of monthly: a single payment avoids interest on instalments 
8. compare quotes from multiple insurers: shopping around helps find the best price 

Adding an experienced driver to a policy can sometimes lower costs by sharing the risk. All details must be correct to avoid ‘fronting,’ which is illegal. 

How many years of no claims discount do you have? 

A no-claims discount (NCD) reduces premiums for claim-free years. Most insurers cap NCD between five and nine years.  

Some providers allow drivers to accrue up to 15 years of no-claims bonuses. Discounts last up to two years without insurance.