The cost of car coverage is falling: prices have fallen to the lowest level in four years thanks to coronavirus, says the trade organization
- The price of a car insurance is at its lowest level for four years
- The average price paid in the second quarter of the year was £ 460
- This is £ 14 – equivalent to 3% – in the first three months of the year
Motorists have seen the cost of auto insurance during the coronavirus pandemic roll back with prices at its lowest level in four years, new research shows.
The average price paid for comprehensive auto insurance between April and June was £ 460, the lowest quarterly level in four years, according to the latest tracker from the Association of British Insurer.
This is down £ 14 – three percent – from the first three months of 2020, with the decline reflecting the impact of the coronavirus blockage, with many motorists traveling much less.
Motorists benefit from cheaper car insurance during the coronavirus pandemic
The average premium also declines by £ 9 annually – equivalent to two percent – and is at its lowest level since the third quarter of 2016.
The ABI tracker looks at the price drivers pay for coverage, rather than what they quote.
Laurenz Gerger, ABI’s general insurance policy adviser, said, “Our latest tracker shows that drivers have benefited from the reduced frequency of road accidents during exit.
In addition to the average premium dropping to its lowest level in years, motorcycle insurers have provided additional support to their customers by waiving any requirements to extend coverage for millions of workers who may need to drive to different locations and those who want to help their communities by transporting medicines or messages to support those affected by the coronavirus.
“Persistent cost pressures, including rising repair bills and delays in introducing personal injury reforms, will require motorists to shop around to get the best deal for their needs.”
There have been far fewer drivers on the road since the corona virus locked everyone up
Separate research by Safe earlier in July revealed that car insurers have saved £ 1.3 billion since the lockdown started, as fewer claims were made and paid while drivers stayed at home.
This works out to an additional £ 47 per driver due to a 70 percent drop in car accidents between March and May.
It also found that London saw the largest drop in car accidents during the lock, meaning insurers paid out about 82 percent less than in a normal year.
Scotland saw payouts cut in half, while in most other areas claims declined by 60 to 75 percent.
Some insurers, including Admiral and LV =, recognized that most of their customers did not drive as much during the lock and decided to give them refunds.
Admiral also waived car claims, over-compensation for NHS or rescuers, and guaranteed coverage for customers who use their vehicles to transport people, provide medical supplies and equipment, or items to people who isolate themselves.
Cost reduction for younger drivers
Auto insurance costs are also at the lowest level in five years for young drivers, according to a separate study by Compare the Market.
It now costs an average of £ 1,182 to insure a car for people aged between 17 and 24.
The cheapest average premiums available in the market for young drivers have fallen by £ 18 annually.
However, Coronavirus has affected the number of young people using their cars, with one in five quitting using it altogether.
In addition, 47 percent of those on full or provisional driving have found that the financial impact of the corona virus has made it more difficult for them to pay the running costs of their car.
Young drivers are still encouraged to use price comparison sites to see if they can save money on their premiums.
Dan Hutson, head of auto insurance at Compare the Market, said, “Young drivers have always had to pay the most when it comes to insurance. While this is still the case, the burden of auto insurance during the pandemic has eased somewhat as coverage costs have fallen over the past six months.
Insurance, however, remains by far the largest cost item for drivers. The pandemic has also put many young people in financial difficulties, affecting their ability to finance the running costs of owning a car.
“The easiest way to counter this is to switch. Our statistics indicate that 17-24 year olds can save over £ 200 by switching to a better deal in the market. ‘
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