Vitality, a recent addition to the UK car insurance market has pulled out of the sector and is no longer offering motor vehicle cover after just 2 years.  

A statement on the company website says, ““We no longer offer Vitality Car Insurance. Over recent months the car insurance market has experienced unprecedented claims inflation, leading to significant price increases. This has impacted our ability to deliver appropriate value for good drivers. 

Earlier this year, RSA Insurance announced it would exit the UK motor market after conducting a review of its business.

Many insurers are currently feeling significant cost pressures, with rising claims cost often cited as the reason for their lack of profitability. However, while the cost of vehicle repair has risen significantly over recent years, this only reflects the growing complexity of repairs and the fact that rates had been kept at unnaturally low levels for many decades. 

The accident repair market is only now adjusting to a shift in the power balance which had been wholly in favour of insurers for many years. It appears that some insurance companies wrongly believed that unrealistically low repair cost would continue indefinitely and have suffered as a result.