An automotive expert has made a number of predictions on how car insurance could change throughout 2025, including measures that could help to cut the cost of running a vehicle.
Whilst current data shows that the cost of car insurance is slowly beginning to fall, the charge is still eye-wateringly high for many motorists, with the average driver paying £861 in October 2024.
As a result, Matt Wood, Director of Data and Pricing at the temporary insurance provider GoShorty, predicts that more motorists could make the switch to one-day policies to keep the cost low.
He explained: “Our internal data shows that one-day policies are most popular on Saturdays, two-day policies are most popular on Fridays and Saturdays, and three-day policies are most popular on Fridays.
“This data shows that many drivers opt for weekend-specific insurance policies, reflective of an increase in demand for flexibility and shifts in how drivers use and insure their vehicles.”
Whilst the majority of car insurance policies sold in the UK allow drivers to travel any time they like, more limited policies that restrict when motorists can get behind the wheel are growing in popularity.
In most cases, they only allow drivers to temporarily insure a vehicle on the roads, such as for a specific day or weekend, therefore only having to pay for the days they use their car.
GoShorty highlighted that this practice may rise in popularity with more Brits working from home, meaning there is less of a need to use a car on a daily basis for commuting.
In addition, Andy Moody, Founder and Managing Director of GoShorty, also suggested that more car insurance companies could roll out incentives for electric vehicles to encourage drivers to make the switch.
He continue: “GoShorty is passionate about supporting and facilitating zero-emission efforts, empowering our drivers to regularly make environmentally conscious decisions, such as car sharing.
“As a leading provider of temporary car insurance, we recognise our role in driving change within the motoring industry, which is why we offer policies to both electric and hybrid vehicle users, with electric vehicle policies increasing by 167 percent YoY (year-on-year).”
Currently, electric vehicles are more expensive to insure when compared to petrol and diesel models since they often have a higher price and can be difficult to repair after an accident if the battery is damaged.
However, whilst EVs are currently between 10 and 20 percent more to cover than petrol and diesel counterparts, the figure is set to drop as new models become more affordable to buy and knowledge surrounding electric models improves.
GoShorty also voiced predictions that some insurance companies could also offer better deals to EV customers as a way of encouraging more sales.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.