Motability Insurance In 2025: What’s New, What’s Changing & What To Check

Hello from the team at MotaClarity – and big thanks to Mobility in Motion for inviting us back this month to share a round-up of all the latest Motability Scheme insurance updates, including news about the introduction of a ‘black-box’ style telematics system for drivers under 30.

Who’s Behind The Motability Scheme’s Insurance Cover?

Motability Scheme insurance, since September 2023, has been provided by Direct Line Motability (DLM). Alongside comprehensive cover, there’s a stronger digital experience so customers can now view policy info, check excesses, register a claim, and add or remove named drivers from the online Motability account. A phone helpline is still available if you’d rather talk it through – reach the team on 0300 037 3737.

What Your Motability Policy Typically Includes

You’re covered for the essentials you’d expect from a comprehensive insurance policy, including:

• Up to three named drivers
• Loss, damage or theft of the car
• Replacement locks if keys are lost or stolen
• Windscreen and window cover
• Help with recovery and, in many cases, a replacement car after an accident
• Personal accident cover for the driver and passengers
• Agreed vehicle adaptations and standard accessories fitted to the vehicle
• Cover for travel to a normal workplace and for unpaid voluntary/charitable driving

Always refer to your DLM cover booklet for the definitive list and any conditions.

Who Can Drive Your Motability Vehicle

You can nominate up to three drivers, and they don’t have to live at the same address. The vehicle must always be used for the benefit of the Motability Scheme customer, and some higher-risk drivers (for example, with certain convictions) may not be approved. Only the named drivers are insured – nobody else is covered to drive the car, even if they hold fully comprehensive insurance on their own policy.

Young-Driver Rules (Under 25s) At A Glance

To help keep premiums sustainable, there are limits on the cars younger drivers can use on the Scheme:

• Under 25 (petrol/diesel/hybrid): insurance group 16 or lower and 120bhp or less
• Under 25 (EV): insurance group 21 or lower and 140bhp or less
• Only one driver under 21 can be on the policy

These restrictions don’t apply to drivers of Wheelchair Accessible Vehicles (WAVs).

View Motability Cars For Drivers Under 25 On MotaClarity >

NEW: Drive Smart Telematics When Any Driver Is Under 30

If any named driver on the policy is under 30, then all drivers on that policy will have to take part in Drive Smart, Motability’s new telematics programme. A discreet device plus a phone app helps track things like speed, braking, acceleration, cornering and distraction. Safe driving can earn up to £160 in e-gift cards per year; persistently risky driving may affect future eligibility. Check out our recent blog post here for further information.

Excess Increasing For New Leases From 1 October 2025

Planning a new application? From 1 October 2025, the standard excess rises from £100 to £250, and windscreen excess from £50 to £100 (for new leases only started on/after that date). Existing leases keep their current excess for the remainder of the term, and if you’re under 25 (or have a specifically agreed excess), those amounts stay as set in your policy documents.

Changing Or Adding Named Drivers Is Quicker Online

The fastest way to add or swap a driver mid-lease is through your Motability online account; if they pass the checks, they’re usually added straightaway. You can still call if you prefer, but online is typically quicker.

Claims: What To Do If Something Happens

If you’re involved in an incident, contact DLM as soon as possible to register a claim. They’ll confirm next steps, arrange repairs and discuss alternative transport where appropriate. Keep your customer reference number and the incident details handy when you get in touch.

No-Claims Bonus & Proof Of Claims History

You don’t build a traditional No-Claims Bonus while you’re on the Motability Scheme. If you leave the Scheme in future, DLM can issue a claims-history letter, which some insurers may accept when you move to a standard policy.

Taking Your Motability Car Abroad

Foreign travel is supported, but you’ll need to request a VE103 (Vehicle on Hire) form in advance. For travel within the EU (plus Iceland, Norway, Switzerland and Liechtenstein), a Green Card may also be required – typically issued automatically when you request the VE103. Allow a few weeks before you go.

What Isn’t Covered By Motability Insurance?

Common exclusions include: personal belongings in the car, non-standard equipment or modifications not agreed with Motability, serious interior damage, and business use beyond commuting. Always check your cover booklet for the full details.

Keeping Motability Insurance Simple

We hope this helps you feel clearer about what’s changed – and what hasn’t – with Motability insurance in 2025. Thanks again to the Mobility in Motion team for the opportunity to share these updates with your community. For more on disability motoring, from the latest news and car reviews to in-depth guides on all aspects of the Motability Scheme, visit us at MotaClarity.