Automotive insurance prices drop to £ 430 – the bottom since 2016 – That is Cash
Auto insurance premiums have dropped to their lowest level since 2016 and are now £ 44 cheaper than they were before the pandemic, the industry body says
- The average cost of motor insurance fell to £ 430 in the second quarter
- It's now £ 30 cheaper than summer 2020 and £ 44 less than pre-pandemic
- It's also the cheapest quarterly average since early 2016
Auto insurance premiums have dropped to £ 430, the lowest in five years, new data from the industry association shows.
The average cost of fully comprehensive car insurance is now £ 30 cheaper than last summer and £ 44 lower than the first three months of 2020 before the pandemic.
The lower figure is also the cheapest quarterly average since early 2016, when coverage was typically £ 429, according to the Association of British Insurers.
The average cost of fully comprehensive car insurance is now £ 44 lower than it was before Covid
Car insurance costs have decreased over the past year, in part due to the sharp decline in car insurance claims during consecutive lockdowns and fewer vehicles on the roads. The dates are valid until the end of June 2021.
"The decline in the average car premium clearly shows that millions of drivers continue to benefit from insurers' cost savings during the lockdown," said Laura Hughes, general manager of ABI.
"It will be interesting to see if motor vehicle damage increases once the pandemic is over and road traffic continues to increase."
Direct Line, the UK's largest motor insurer, said yesterday that both claims decline and cover prices began to stabilize in the second quarter as restrictions eased.
The frequency of claims remained below normal, however, as the pandemic permanently changed the work behavior of many people who no longer commute.
The average premium for the first six months of this year has fallen by £ 38 since the fourth quarter of last year, ABI said.
It added that insurers are still facing ongoing cost pressures from rising repair bills.
"While the underlying cost pressures from rising repair bills remain, the market will remain competitive and allow motorists to look for the best deal for their needs."
The ABI's tracker looks at the price people pay for coverage, not the price they quote.
Similar recent research from Compare the Market shows a similar downward trend in auto insurance costs.
Direct Line, the UK's largest auto insurer, announced yesterday that both claims decline and cover prices began to stabilize in the second quarter as restrictions eased
According to their research, car insurance premiums have fallen by £ 24 since the winter to £ 629 during the winter The cheapest premium also fell to £ 536, down from £ 595 in the second quarter of last year.
But last year's cost reductions were followed by a number of years of high premiums.
Over the past five years there have been changes in government policy that have pushed premiums up, including increases in insurance premium tax, delays in whiplash reform, and changes to the Ogden rate that have pushed up claims costs.
However, the insurance industry has seen significant changes since the beginning of the pandemic as government restrictions have forced many cars off the streets, which in turn reduces claims volumes and depresses premiums.
The ABI said it was "closely monitoring" the impact of the new official claims portal launched in May, which aims to simplify the whiplash procedure and ensure adequate compensation for real beneficiaries.
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