Have You Taken Advantage of Cheaper Car Insurance?

Thu 30th Jul 2020

As the UK motor insurance industry basks in the unexpected profit bonus brought on by the coronavirus pandemic, they may finally be passing on some of the savings to motorists.

Figures published by the Association of British Insurers reveals that the average price for comprehensive motor insurance is down to £460, its lowest quarterly level for four years.

The impact of the global pandemic and ensuing lockdown ensured that there were fewer cars on the roads in the first few months of the year, and subsequently fewer accidents. It is estimated that car insurers saved £1.3 billion since lockdown began and while some insurers gave their customers a financial bonus on their premium, this is the first evidence that the companies are reflecting those savings in new premiums.

Laurenz Gerger, ABI's general insurance policy adviser, said: “Our latest tracker shows that motorists have been benefitting from reduced road accident frequency during lockdown.

“In addition to the average premium falling to the lowest level in years, motor insurers have provided extra support to their customers by waiving any requirements to extend cover for millions of workers who may need to drive to different locations, and people who want to help their communities by transporting medicines or groceries to support those affected by coronavirus.

“However, continued cost pressures, including rising repair bills and the delay in introducing personal injury reforms, mean that motorists will need to continue to shop around to get the best deal for their needs.”

Premiums are down £14 compared to the opening three months of 2020 according to the ABI figures, while the average premium is down £9 on the year, its lowest level since the third quarter of 2016.