Motor Costs at Four Year Low

The average price paid for comprehensive motor insurance in the UK has fallen to the lowest point in four years according to new figures from the Association of British Insurers.

The price for comprehensive cover for the second quarter of the year is at £460, the lowest level since the third quarter of 2016 reported the ABI’s latest Motor Insurance Premium Tracker, published today.

The association said the fall in part reflects the impact of the COVID-19 lockdown with most motorists making far fewer car journeys. However, the ABI said there remained a number of cost pressures on insurers around repairs and compensation payments so drivers needed to shop around in order to get the best available price.

The ABI’s Tracker is the only survey that looks at the price consumers pay for their cover, rather than the price they are quoted.

The figures highlight that

  • the average price paid for comprehensive motor insurance was £460, down £14 (3%) on the first quarter of the year.
  • year on year, the average premium fell by £9 (2%) to stand at its lowest level since quarter 3, 2016.

Laurenz Gerger, ABI’s General Insurance Policy Adviser, said: “Our latest motor premium tracker clearly 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.”