EVEN IF you only use your car to drive to the grocery store every other week during the current coronavirus blockage, it must of course still be insured. However, the lack of cars on the road has led to fewer insurance claims, and it’s possible that this will translate into cheaper premiums, according to price comparison website Comparethemarket.com.
A large percentage of the workforce is currently working from home or on leave, where a company can grant an employee a leave of absence and then claim 80% of their wages, up to £ 2,500 a month, from the government. The Institute for Fiscal Studies (IFS) estimates that 22% of working-age adults are key workers. The remaining 78%, if not on leave, would have to work from home.
This means that the roads are relatively empty, except for the sector of the population that qualifies as key workers, many of whom continue to work to provide essential services during the crisis.
Information provided to Driving.co.uk by Compareethemarket.com shows a decrease in insurance premiums from month to month for some age groups.
The good news comes for younger drivers: People under 35 saw auto insurance premiums drop in the past month. People who still get ID when they buy wine might get a little more spending money, with insurance for 16-24 year olds dropping £ 85 per month, which equates to a 7% drop. While drivers can get a driver’s license from the age of 17, you can learn to ride a moped and take a moped test at the age of 16.
Those in the 25-34 age bracket also saw a 3% month-on-month decline, which in pounds and cents equates to around £ 22.
However, middle-aged and elderly people don’t have much to celebrate. Insurance premiums for people over 35 have largely stayed the same, according to Comparethemarket.com, with the largest monthly variance being an increase of £ 5 for people 65 and over. In total, insurance premiums fell by an average of £ 23, but right now are the only people under 35 to benefit from this.
However, this is only the beginning of what could be a long period of fewer cars on the road and Dan Hutson, head of engine at Comparethemarket.com, told Driving.co.uk insurance premiums are likely to drop in line with the number of claims.
“The government is reporting a nearly 70% reduction in motor vehicle use across the country,” he said. “The full effect of this on the price of auto insurance has yet to be seen, but we expect premiums to go down even further.”
If you are on leave, renegotiate your insurance
If you are over 35, there are still a few things you can do to lower your premium, especially if you are in the majority of the workforce who are now working from home or on leave. “If you stop traveling and start working from home in the near future, there is a chance that your provider can lower your premium,” said Hutson.
Most of us can expect our annual mileage to decrease significantly as there are now only four reasons why you may be allowed to leave the home. A reduction in your expected annual mileage can also affect your premium, so it’s worth notifying your insurance company.
If the lack of reasons for you to use your car has resulted in it now being stored elsewhere, that could also save you a bit of money, especially if the place it is now located means it is better protected from Theft or damage.
Hutson said, “If you are not going to use your car and want to keep it somewhere other than the place listed on your insurance policy (for example, moving it from the street to a garage), you must notify your insurance company. because putting your car on the street can reduce your risk profile. “
So, depending on your age, you could immediately see a silver lining from this lockdown in the form of cheaper insurance. It’s likely this will start soon for all ages, so be patient – but in the meantime, it’s worth calling your insurance company to see if you can save some money, at a time when a lot of where possible, people must find ways to save.