Motability Insurance Explained: The Gaps You Should Know About

We’re pleased to be back on the Mobility in Motion platform and would like to thank the team for welcoming MotaClarity as a guest contributor once again. One question we’re regularly asked is: what doesn’t Motability insurance cover? While the insurance included with a Motability lease is comprehensive and offers excellent peace of mind, there are still some important exclusions that drivers should be aware of.

Below, we explain the key areas where cover may be limited, hopefully helping you avoid unexpected surprises later on.

Understanding The Limits Of Motability Insurance

An Excess Still Applies

If you need to make a claim, you’ll usually have to contribute an excess before repairs begin. This is the amount you pay toward the cost of a claim and isn’t covered automatically by the scheme. The excess payable by customers has also increased. From 1 October 2025, anyone starting a new Motability lease will face higher excess charges when making a claim:

• Standard excess: increased from £100 to £250
• Windscreen replacement excess: increased from £50 to £100

Personal Belongings In The Vehicle

Your insurance won’t pay for anything stolen or damaged that you keep inside the vehicle, such as wheelchairs, phones, bags, coats or other personal items. For this, you’ll need separate contents or vehicle contents cover.

Modifications / Extras

The insurance only covers adaptations and equipment that are agreed in advance and essential for use such as driving aids, vehicle access & mobility equipment loading solutions. Non-standard extras, like dash cams or any accessories fitted without approval, won’t be covered if they’re damaged or stolen.

Interior Damage Is Excluded

Damage to trim, upholstery stains, burns or other interior wear and tear isn’t covered. Repairs for these kinds of issues are typically at your own expense.

Driving Other Vehicles

Your Motability insurance only covers the specific vehicle you lease. If you borrow or drive someone else’s car, that isn’t insured under the scheme’s policy.

If you’re given a courtesy or replacement vehicle while your car is being serviced or repaired, Motability will ensure you’re still insured.

Who Is Allowed To Drive

If someone drives your Motability vehicle without being listed on the policy, even if they have insurance of their own, any damage or injury caused by an accident won’t be covered under your scheme insurance. You can add up to three named drivers (which doesn’t have to include the Motability customer), but anyone else isn’t protected.

Business & Work Use

The standard policy doesn’t cover business use beyond normal commuting to and from a usual workplace. If you plan to use your vehicle for work-related driving (beyond basic commuting), you’ll need to arrange specific cover.  If you’re unsure, we recommend checking with Motability.

Driving Under 30? You’ll Need To Know About Drive Smart

If your Motability insurance policy includes a driver under the age of 30, there’s an additional requirement you should be aware of. Motability has introduced a telematics programme called Drive Smart, designed to encourage safer driving among younger drivers on the Scheme. Participation is mandatory when a named driver under 30 is included on the policy.

Drive Smart is not a traditional “black box” insurance policy and doesn’t replace Motability’s standard comprehensive cover. Instead, it’s a safety and education initiative built into the Scheme’s insurance terms for younger drivers.

Note that you can’t opt out of Drive Smart if your policy includes a driver under 30, and the programme applies regardless of whether the under-30 driver is the Motability customer or a named driver. Explore our article which includes everything you need to know about Drive Smart.  

So, What’s Actually Covered on Motability Insurance?

While there are exclusions to be aware of, Motability insurance does include a lot of important protections, such as:

• Loss or damage to the vehicle, including standard in-car equipment
• Personal accident cover up to £5,000
• Replacement locks if keys are stolen
• Repair or replacement of glass
• Fire or theft damage
• Agreed adaptations and modifications
• Driving for voluntary or charitable work (as long as no fixed payment is received)
• Travel to and from your normal workplace (note: drivers who do not live with you might not be covered for these journeys)

Final Thoughts

Motability insurance is generous compared with many private policies — you don’t need to arrange your own insurance, and routine risks are largely taken care of.

But it’s not a blank cheque:

• You’re still responsible for the excess on any claim
• Personal items and certain damage types aren’t covered
• Only the vehicle you lease and the people named on your policy are protected

If you rely on the Scheme for accessible transport, as hundreds of thousands of people do, understanding these gaps, along with the Drive Smart requirements for younger drivers, will help you stay properly protected and avoid unexpected costs.

*All information correct at time of publication. Always be sure to speak to the Motability team to discuss your personal circumstances.