Motorists’ insurance costs fell by a record amount in the first three months of this year, pushing the average price for insurance coverage to its lowest level in nearly five years, according to insurers.
The average price paid fell by £32 in the first three months of 2021 compared to the last three months of 2020.
This was the largest quarterly decline in the Association of British Insurers records since it began collecting the data in 2012.
The decline partly reflects the passing on of cost savings by insurers from fewer claims handled during lockdowns, and fewer young drivers, who are likely to pay higher motorbike premiums, on the road due to lockdown driving test restrictions, the ABI said.
However, insurers have faced different cost pressures, with rising repair costs.
While the nationwide lockdown has led to fewer car journeys over the period, it’s good to see drivers continued to get the best deals from a competitive motor insurance market in the first quarter of the yearLaura Hughes, ABI
The average price paid for comprehensive motor insurance in the first quarter of this year was £436 – the lowest level since 2016.
The ABI’s auto insurance premium tracker looks at the price consumers pay for their coverage, rather than the price they are quoted.
The average premium paid in the first quarter of 2021 was 8% lower than a year earlier.
Laura Hughes, general insurance manager for the ABI, said: “While the national shutdown may have resulted in fewer car journeys during the period, it’s good to see drivers continued to get the best deals from a competitive market in the first quarter of the year. car insurance market.
“The coming months will see significant developments in the motorcycle market as we cautiously emerge from the pandemic and return to more common driving patterns, and with the launch, at the end of May, of the official injury claims portal that will simplify whiplash injuries. claims process while ensuring proportionate compensation for real claimants.
“While underlying cost pressures surrounding rising repair bills will remain, the market will remain competitive, allowing motorists to shop around for the best deal for their needs.”
The new personal injury claims portal aims to manage the high costs of whiplash claims through a simple and straightforward process, while ensuring that a proportionate compensation is paid.
It assists legally unrepresented claimants in making a claim for soft tissue injuries following a traffic accident. Plaintiffs are still allowed to have legal representation to support a claim through the portal if they wish, the ABI said.