Four out of five drivers pay full car insurance, even though they drive less in lockdown


Only about a fifth of drivers have because of the coronavirus restrictions, which ones? has found.

This is despite the fact that almost half of the motorists have drastically reduced the number of kilometers.

The consumer group surveyed more than 2,300 people with auto, home, or private health insurance about the impact Covid-19 had on their coverage and found that drivers likely felt their policies had lost value.

About half (49%) of auto insurance customers in the study had seen a significant drop in mileage year-on-year, but only a fraction told their insurer or saw a premium refund as a result.

Which? found that only about a fifth (21%) of auto insurance customers have repaid part of their premium.

Some drivers felt they were overpaying for their coverage, given how little they drove during the lockdown.

Streets are a lot emptier this year
Streets are a lot emptier this year

One customer told Which? “I covered 40 miles from March to July.”

The survey also found that one in seven (14%) auto and home insurance customers struggled with their premiums during the pandemic, as did nearly three in 10 (29%) private health insurers (PMI).

Most of the customers who were struggling said they had some sort of financial backing from their auto insurance company.

Which? said Admiral stands out by proactively providing discounts to customers.

It calls on insurers in general to do more to support customers struggling financially as a result of the pandemic by making every effort to support and help those who need it most.

Harry Rose, editor of which one? Magazine: “Our survey shows that many insurance customers are struggling with their premiums as a result of the pandemic, but up to a quarter of these people have not received any support.”

Only one provider offered automatic refunds
Only one provider offered automatic refunds

The Association of British Insurers (ABI) said its motorcycle premium tracker shows that the average cost of comprehensive motor insurance is its four-year low of £ 460. It also said underlying cost pressures for insurers remain, such as the rising cost of car repairs.

The ABI said in a statement, “Our data from ABI members shows that during the first national lockdown, the value of the average paid claim increased by 27%, despite fewer claims.”

The statement continued: “It is true that many drivers have made less use of their vehicle during shutdown. However, drivers are required by law to purchase insurance for when they drive and to protect against the risks of theft and theft. damage.

“Insurers have and continue to provide motorists with the exceptional circumstances, including automatically covering those who use their vehicle for community volunteer work, commuting, and helping those who are concerned about being able to continue paying their premiums in terms.

“Any premium adjustments or refunds are a matter for individual insurers.”

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