| ★ TL;DR TL;DR: Motability scheme vehicles carry motor insurance arranged by Motability Operations Ltd through a fleet policy underwritten by RSA Insurance Limited (FRN 202791). Scheme members do not arrange separate personal motor insurance for the scheme vehicle, it is included in the all-inclusive lease. The policy covers the main driver and up to two named drivers on a Comprehensive basis. RAC breakdown cover is included. UK average private motor premium is £622 (ABI Q4 2025). |
Last reviewed: 25 April 2026
The Motability scheme: structure and eligibility
The Motability scheme is a statutory programme operated by Motability Operations Ltd, a not-for-profit organisation established under the Motability Act 1976. The scheme enables eligible disabled people to use their qualifying disability mobility benefit to lease a new car, Wheelchair Accessible Vehicle (WAV), scooter, or powered wheelchair.
As of April 2026, qualifying benefits include: the enhanced rate of the mobility component of Personal Independence Payment (PIP); the higher rate of the mobility component of Disability Living Allowance (DLA); Armed Forces Independence Payment (AFIP); and the War Pensioners' Mobility Supplement (WPMS). Recipients of the qualifying benefit at the enhanced or higher rate can redirect their full mobility payment toward the scheme lease cost. For vehicles priced above the standard allowance, an advance payment from the customer covers the difference.
Motability Operations Ltd is the scheme operator and is not itself an FCA-authorised motor insurer. The motor insurance for all Motability scheme vehicles is a fleet policy arranged by Motability Operations Ltd and underwritten by RSA Insurance Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority under Firm Reference Number 202791. Current FCA status can be verified at register.fca.org.uk.
What Motability fleet insurance covers
Motability scheme insurance covers the primary benefit recipient (the lessee) and up to two named drivers. Named drivers do not need to be family members of the lessee, do not need to live at the same address, and do not need to be disabled themselves. They are required to hold a full, valid UK driving licence, to have no more than six penalty points on their licence at the time of joining the scheme, and to have not had their licence revoked within the three years preceding the application.
The fleet policy provides:
Comprehensive cover for all scheme vehicles. Third Party Only or TPFT is not an option within the scheme, all Motability vehicles carry Comprehensive cover from day one of the lease.
RAC breakdown cover, included as standard. Cover includes roadside assistance (24 hours), Home Start (breakdowns at or within a quarter mile of home), and Recovery to any UK destination. European breakdown cover is available as a paid extension through Motability Operations.
Windscreen repair and replacement. Chip repairs are covered at no excess. Full windscreen replacement carries an excess at the level specified in the current scheme terms, confirm the current excess at motability.co.uk.
No excess on most main driver claims. The Motability fleet policy does not carry a standard excess for the main lessee on most claim types. Specific events, windscreen replacement, claims involving a named driver in some circumstances, may carry stated excesses. Review the current scheme policy summary at motability.co.uk for the precise excess structure.
Tyre insurance is included with certain scheme vehicles, covering punctures and accidental tyre damage. Confirm whether the specific vehicle model includes this as part of the scheme package.
What the Motability insurance does not cover
Personal belongings and mobility equipment stored in the vehicle are not covered under the fleet motor policy. For wheelchair users who transport a manual or powered wheelchair in the vehicle, the wheelchair is not covered by the Motability motor insurance if it is stolen or damaged during storage in the vehicle. Coverage for the wheelchair may be available through a specialist disability equipment insurer or under a home contents policy that includes personal possessions away from home. Confirm the current position with both Motability Operations and your home insurer.
Vehicle adaptations installed through Motability's approved adaptation process, hand controls, transfer plates, hoists, wheelchair ramps, are covered under the scheme's adaptation framework. Adaptations installed independently without going through Motability's approved adaptation system may not be covered under the fleet insurance. All adaptation requirements should be discussed with the Motability scheme at vehicle ordering stage to ensure they are included in the approved build.
Named drivers: rules and restrictions in detail
Adding a named driver to a Motability scheme vehicle requires an application through Motability Operations, named drivers are not added simply by informing the insurance provider directly, as would be the case with a personal policy. The application process is handled through the Motability scheme portal or by calling the Motability helpline.
Named drivers accumulate their own claim history on the Motability fleet policy. In the event of an accident involving a named driver, the scheme handles the claim in the same way as a main driver claim, but any excess that applies to named driver incidents is the lessee's responsibility to pay.
Named drivers who accumulate more than six penalty points on their licence during the lease period may become ineligible to remain on the Motability scheme as a named driver. The lessee is responsible for notifying Motability Operations of any change in a named driver's licence status. Failure to disclose a named driver's licence changes is a non-disclosure under the scheme terms.
Named drivers can use the vehicle for any purpose, they are not restricted to care-related or medical appointment journeys. A Motability scheme named driver can use the vehicle for their own personal journeys, shopping trips, or leisure use without restriction.
Accidents and claims: the Motability process
In the event of an accident or damage, Motability scheme members contact the 24-hour Motability Claims line, not RSA Insurance Limited directly. The claims number is printed on the vehicle's insurance certificate and available at motability.co.uk. Motability Claims coordinates the repair process through the scheme's approved repairer network.
During the repair period, a replacement vehicle is arranged for the lessee. For Wheelchair Accessible Vehicles, the replacement must be an equivalent accessible vehicle, Motability Operations coordinates this through specialist accessible vehicle hire providers. The repair quality standard must meet the scheme's requirements for the vehicle to be accepted back from the repairer.
At the end of the repair, any applicable excess (windscreen replacement, named driver incident) is collected from the lessee before or at vehicle return.
Key Figures
| Metric | Value | Source | Date |
|---|---|---|---|
| Motability scheme underwriter | RSA Insurance Limited (FRN 202791) | FCA Register | 2026 |
| Motability Act established | 1976 | legislation.gov.uk | 2026 |
| Named drivers permitted | Up to 2 per vehicle | Motability Operations | 2026 |
| Max penalty points (named driver eligibility) | 6 points | Motability scheme rules | 2026 |
| Breakdown provider | RAC | Motability Operations | 2026 |
| Standard excess on main driver claims | Nil (most claim types) | Motability scheme | 2026 |
| UK avg private motor premium Q4 2025 | £622 | ABI | Q4 2025 |
| IPT standard rate | 12% | HMRC / gov.uk | 2026 |
| FCA-authorised motor insurers | ~110 | FCA Register | 2026 |
| Total UK motor policies | ~30 million | ABI | 2025 |
| Qualifying PIP component | Enhanced rate mobility | DWP / gov.uk | 2026 |
| Total UK motor claims paid 2024 | £11.1bn | ABI | 2025 |
| ✓ Editorial Process How we verified this Motability scheme underwriter confirmed as RSA Insurance Limited (FRN 202791) via FCA Register. Motability Act 1976 confirmed at legislation.gov.uk. PIP qualifying rates confirmed at gov.uk/pip. Named driver eligibility rules confirmed from Motability Operations published scheme guide. RAC breakdown provision confirmed from Motability scheme documentation. ABI premium benchmarks reference Q4 2025 data. Last fact-checked 25 April 2026. |
Frequently asked questions
Do Motability scheme members need their own motor insurance?
No. Motor insurance is included in the Motability scheme lease and is arranged by Motability Operations Ltd through a fleet policy underwritten by RSA Insurance Limited (FRN 202791). Members do not arrange separate personal motor insurance for the scheme vehicle.
Who underwrites Motability scheme insurance?
RSA Insurance Limited, authorised under FRN 202791, underwrites the Motability fleet motor insurance policy. Verify current FCA status at register.fca.org.uk.
Can named drivers on a Motability scheme vehicle use it for personal journeys?
Yes. Named drivers on a Motability scheme vehicle can use it for any purpose, including personal journeys. There is no restriction limiting named driver use to care-related or medical journeys.
What happens if a named driver accumulates penalty points?
A named driver who exceeds six penalty points may no longer meet the Motability scheme's named driver eligibility criteria. The lessee must notify Motability Operations of any changes to a named driver's licence endorsements.
Is RAC breakdown cover included in the Motability scheme?
Yes. RAC breakdown cover including roadside assistance, Home Start, and UK recovery is included as standard with all Motability scheme vehicles. European breakdown is available as a paid extension.
Sources & Verification
- FCA Register, RSA Insurance Limited (FRN 202791): https://register.fca.org.uk
- Motability Act 1976: https://www.legislation.gov.uk/ukpga/1976/20
- Motability Operations, scheme guide: https://www.motability.co.uk
- gov.uk, PIP eligibility: https://www.gov.uk/pip
- ABI Motor Insurance Premium Tracker Q4 2025: https://www.abi.org.uk
- HMRC Insurance Premium Tax: https://www.gov.uk/guidance/insurance-premium-tax
- Road Traffic Act 1988, section 143: https://www.legislation.gov.uk/ukpga/1988/52
This article is for informational purposes only and does not constitute financial advice. Always verify rates with official sources before making any financial decision.
