One in Three UK Drivers Afraid to Claim on Insurance as Premium Costs Surge

Quick Summary

New research from CRIF reveals that 35% of UK drivers are now too afraid to make motor insurance claims due to fears of rising premiums. With 39% of motorists finding driving unaffordable, the industry is under pressure to use data and analytics to improve pricing transparency and affordability.

Why Are UK Drivers Hesitant to Make Motor Insurance Claims?

Rising premium costs have created a climate of fear among UK motorists, with 35% of policyholders avoiding claims to prevent future price hikes. This level of hesitation is significantly higher than the European average of 31%, trailing only Ireland in terms of consumer anxiety. Despite insurance being the most widely held cover in the UK, the perceived lack of value is growing as costs outpace consumer confidence.

• 35% of drivers fear making a claim will spike future costs.
• Only 13% of policyholders believe insurance prices are currently stabilising.
• 32% of motorists still describe motor cover as prohibitively expensive.

How Can Data and Analytics Improve Insurance Affordability?

Smarter data usage is being highlighted as the primary solution to the current affordability crisis. Approximately 25% of UK drivers expressed a willingness to share more personal data if it resulted in lower premiums. By leveraging advanced predictive analytics, insurers can move away from generic risk pools toward highly accurate, individualised pricing models that reward safe driving and loyalty.

• 25% of consumers open to data-sharing for better rates.
• 43% demand more consistent and affordable premium structures.
• 31% of users want greater transparency regarding pricing terms.

What Impact Does Rising Inflation Have on the Motor Sector?

Increasing repair costs and fuel price volatility are compounding the financial pressure on UK households. According to the research, 39% of drivers now consider the combined cost of fuel and insurance to be making vehicle ownership unaffordable. This shift is forcing a re-evaluation of risk, where minor accidents go unreported, potentially leading to long-term vehicle safety issues and a distorted view of road safety data.

"UK drivers are continuing to feel the squeeze on getting from A to B. With premium costs about to rise again, motorists are still feeling the pressure, to an extent that many are seriously concerned about having to claim on the cover they actually pay for." said Sara Costantini, Regional Director for the UK and Ireland at CRIF.

FF NEWS TAKE:

This report highlights a critical breakdown in the fundamental promise of insurance. When motor insurance claims become a source of fear rather than a safety net, the product loses its core utility. CRIF’s data proves that the industry must pivot toward data and analytics to restore trust. If insurers don't address this 'claim-phobia' through transparent, data-driven pricing, they risk alienating a generation of drivers who see insurance as a tax rather than a service.