Motorhome premiums soften in 2025 as less enquiries seen for new business

Following a surge in motorhome purchases in the years after the Covid-19 pandemic, interest in these vehicles has been mixed in 2025 as enquiries for new business have fallen.

That was according to Mark Sheppard, senior trading manager at Markerstudy-owned Lancaster Insurance, who said that insurers’ premiums in this line “have certainly softened this year”.

Sheppard has been looking after the motorhome portfolio over the last two years. He said that there was a “surge” in new motorhomes being purchased in the years following the pandemic and in 2024 saw a 20% increase in new registrations for motorhomes.

However, he said that while “a lot” of customers have stayed, “some have obviously found it quite difficult to warrant keeping a £40,000-£50,000 motorhome on their drive in the current economic climate”.

“So, 2024 across the market, we saw quite a significant increase in some of the premiums that were coming through from the panel – probably towards the latter part of 2023 and certainly into early 2024 is where that hit hardest,” Sheppard said.

“It’s been relatively stable this year. We have seen less enquiries coming through for new business, certainly through price comparison website (PCW) channels.”

However, Sheppard said that demand has increased over the last 12 months for the used motorhome market.

“With the network and the channels that we operate in within Markerstudy, we’ve actually got a dealer network as well – more so for our Safeguard and Scenic brands – and I think via that particular channel, we’ve seen quite a bit of interest in business coming through where customers are actually buying used and to an extent – but probably not the same level – brand new motorhomes,” Sheppard said.

“Insurers with their premiums have certainly softened this year and that will probably continue into the early part of 2026.”

Highly valued claims

Sheppard also noted that weather events that have swept the UK in recent years have led to some claims that are significant in value, in turn impacting premiums.

In May 2025, the ABI highlighted that insurers paid out a record £226m for weather-related damage to homes and possessions in the first quarter of 2025, surpassing Q1 2022’s previous payout record by £67m.

The figure marked the first time claims had crossed the £200m boundary and came after seven consecutive quarters where claims topped £100m.

“Certainly, the last few years we’ve seen some significant weather events sweep across the UK and that has an effect on motorhome claims,” Sheppard said.

“Some of those can be quite significant in value – probably by far the most frequent claim is a windscreen claim and [for] some of those vehicles that are worth a significant amount, those windscreens don’t actually turn out that cheap to repair, let alone replace.”

He also highlighted that theft claims “has been quite an issue” over the years.

According to insurance group Atec, caravan thefts rose by 7% in 2022 as camping and caravanning holidays boomed following a relaxation of Covid-19 restrictions.

The report, which was released in August 2023, also revealed that out of those incidents, people aged 60 and over experienced the most loss.

Sheppard noted that while the frequency of theft claims has lowered, the cost it carries is significant and is still an issue.

He said: “It’s fair to say that theft of motorhome in the past was quite an issue. Obviously £100,000 being lifted off the drive or being stolen is quite a significant hit for an insurer.

“We and a lot of other brokers – and certainly with the brands that we have – we do try and help customers in recommending things like tracking devices, manual security devices, quick locks and overnight locations as well.”

‘Market still there’

Despite a soft market and significant claims events, Sheppard noted that the “market is still there” for motorhomes and that the outlook for his firm is positive for the rest of 2025 and 2026.

He said that the dealer network his firm deals with had indicated a “buoyant year”, with sales up 20% to 30%. He also said that customers are not shopping around as much due to a softer market and are staying with his firm due to renewal premiums being competitive.

He said: “The market is still there, certainly for new purchases and more so for used motorhomes and those customers need insurance.

“The outlook for us and our brands is very positive for the rest of the year and for 2026, I firmly believe that is going to continue.

“Year-on-year we are posting growth. We’ve historically had very good brand awareness and that resonates well with the customers that are out there.”