Running a fleet in the UK has never been more challenging. Between rising insurance premiums, regulatory pressures and vehicle costs, businesses are under increasing pressure to balance budgets while keeping drivers safe on the road. Fleet insurance plays a critical role, yet many organisations underestimate just how exposed they are without the right cover.
This blog takes a closer look at the facts and figures shaping the UK fleet industry in 2025 and why businesses should be paying attention.
Fleet Growth and Usage in the UK
The UK fleet market is substantial. There are over 4.3 million company cars on UK roads, alongside vans, trucks and specialist vehicles used by businesses every day. Fleet vehicles account for nearly 60 percent of all new car registrations, underlining how heavily the economy relies on business transport.
On top of that, the average company car covers 18,000 miles per year, compared to just 7,400 miles for a privately owned car. This higher usage naturally increases wear, accident risk and the likelihood of insurance claims.
Insurance Costs and Premium Trends
Fleet insurance premiums have risen steadily in recent years. Data shows that the average UK motor insurance premium increased by 25 percent in 2023 alone, with fleet policies particularly affected due to claim volumes.
Repair costs are also driving premiums upwards. The cost of repairing modern vehicles has increased by over 33 percent since 2020, largely due to advanced technology and parts shortages. For fleets with dozens or even hundreds of vehicles, these increases translate into significant additional expense.
The Cost of Accidents and Claims
Accidents are the biggest driver of fleet insurance claims. Government statistics show that there were over 132,000 reported road casualties in the UK in 2023, with business drivers involved in a high proportion of these. Studies suggest that one in three road accidents in Britain involves someone driving for work.
The financial impact is considerable. The average motor insurance claim now costs £3,600 per incident, while claims involving serious injury can easily exceed six figures. For businesses without comprehensive fleet cover, a single major claim could be devastating.
Driver Shortages and Risk Management
Driver shortages are another major challenge. Industry data suggests the UK is short of more than 50,000 qualified HGV drivers, increasing reliance on less experienced or temporary staff. Research shows that inexperienced drivers are 30 percent more likely to be involved in an accident, highlighting why insurers often scrutinise driver records closely when pricing fleet cover.
To offset risk, many fleets are turning to telematics. Vehicles fitted with telematics devices have been shown to reduce accident rates by up to 20 percent, while also cutting fuel consumption and emissions.
The Shift to Electric Fleets
The transition to electric vehicles (EVs) is reshaping fleet management. More than 50 percent of UK fleets now include at least one electric vehicle, and EV registrations are expected to outnumber petrol by 2030.
However, EV insurance is typically more expensive due to higher repair costs and battery replacement risks. Fleet managers are increasingly required to balance sustainability targets with insurance affordability.
Why Insurance Matters More Than Ever
With rising claim costs, growing accident rates and evolving vehicle technologies, fleet insurance is not just a regulatory requirement. It is a vital financial safety net. Businesses that underinsure, or fail to adapt to changing risks, face exposure that could harm long-term growth.
For brokers and fleet managers, the challenge lies in finding policies that balance affordability with comprehensive protection. Telematics-based discounts, multi-vehicle cover and risk management incentives are now essential tools in keeping premiums manageable.