Motability Scheme Updates Explained
Drive Smart, Insurance & More
Find Out More About The Motability SchemeMotability Scheme Updates 2026
The Motability Scheme is designed to make driving simpler, safer and more accessible. As with any nationwide scheme, it continues to evolve - introducing new initiatives and refining policies to better support customers now and in the future.
To help you stay informed, we’ve broken down the latest Motability Scheme updates, what they mean for you, and, just as importantly, what hasn’t changed.
What Is Drive Smart?
Drive Smart is a Motability initiative created to promote safer driving and provide additional support for customers and named drivers.
Historically, Drive Smart focused on customers who added a named driver under the age of 31 to their policy. From April 2026, this has expanded further:
all new‑to‑scheme customers are now invited to take part, regardless of age.
The aim of Drive Smart is simple - encouraging good driving habits, increasing awareness and helping make every journey safer and more confident. Participation is designed to be supportive rather than intrusive, and your Motability specialist can explain exactly how it works when you apply.
Why Has the Insurance Excess Changed?
From October 2025, Motability updated its insurance excess levels to help ensure the long‑term sustainability of the Scheme and to reflect rising industry‑wide insurance costs.
Here’s what changed:
The standard insurance excess is now £250
The windscreen replacement excess is £100
While excess levels have increased, your Motability insurance still provides comprehensive cover, including support in the event of an accident, theft or damage. Insurance, breakdown assistance and claims handling all remain included as part of your lease - giving you peace of mind throughout your agreement.
What Do Lease Extension Changes Mean?
Motability has also made changes to how lease extensions are handled.
From December 2025, the Scheme now offers short, key‑to‑key lease extensions only. This means:
Small extensions may be available to help bridge handover timelines.
Long‑term lease extensions are no longer offered.
These changes help maintain fairness across the Scheme and ensure vehicles are replaced within appropriate timeframes.
Customers nearing the end of their lease will continue to be guided through the renewal process by their Motability specialist, with plenty of support available.
Are Current Leases Affected?
If you’re already on the Motability Scheme, your current lease is not affected by these changes.
What hasn’t changed includes:
- Insurance included within your lease
- Servicing and maintenance
- Breakdown cover
- Tyre repair and replacement
- Ongoing support from Motability and your dealership
Any updates apply either to new applications or future policy points, and your existing agreement remains valid under the terms you agreed to.
Change can raise questions, and that’s completely understandable. The good news is that the core promise of the Motability Scheme remains exactly the same: worry‑free motoring, clear costs and expert support.
At Group 1, our Motability specialists are here to guide you through every stage - from understanding the latest updates to choosing the right vehicle for your needs.
If you’d like to learn more, speak to a specialist or explore current Motability offers, we’re always happy to help.