Acorn Group expects triple-digit growth in 2025 for short-term motor insurance policies

The UK’s motor insurance landscape is undergoing a significant transformation, with a notable surge in demand for flexible, short-term car insurance products, according to Acorn Group.

The firm, which experienced a 200% growth in such policies in 2024, estimates that around 10 million short-term policies are sold in the UK each year. 

This increasing demand has also been seen in Uswitch research into driving habits. Published in June 2025, data revealed that searches for temporary car insurance have boosted 236% since 2021. 

Amid these increases, Acorn Group, which launched its own short-term cover brand Briefly a year ago, is aiming for triple-digit growth in this area in 2025. 

Alasdair Taylor, general manager of Briefly at Acorn Group, said: “The UK’s driving landscape, shaped by the rising cost of living and evolving lifestyles, is fuelling an unprecedented demand for flexible motor insurance and signals a fundamental shift in how UK drivers are protecting themselves on the road.

“As a result, the market is not just expanding, it’s accelerating, and we anticipate continued, robust growth as more drivers embrace this practical and efficient way to insure.”

What is driving market demand?

One of the key factors Acorn Group attributes to this market shift is the cost of living crisis, in which trends suggest a potential decrease in the average number of cars per household, particularly in urban areas.

This has lead to more individuals and households to borrow vehicles and necessitates flexible insurance products.

Linked to the increasing cost of motoring, Acorn Group has also found that short-term cover is also proving particularly attractive for younger, more inexperienced drivers who typically face high annual premiums. 

This option allows them to purchase cover only when needed and effectively pays for their usage.

Miruna Constantinescu, customer and marketing director at Acorn Group, said: “We’ve been ideally placed to capitalise on the growth in this dynamic market segment through our own brand, Briefly, and our broking partners.

”Being at the forefront of non-standard insurance innovations underscores our commitment to developing customer-centric solutions.

”This ensures that as driving needs change, Acorn remains at the cutting-edge, providing peace of mind and flexible solutions to millions of motorists across the UK.”