Cost of car insurance falls to four-year low
The ABI’s latest Motor Insurance Premium Tracker found the average price paid for comprehensive motor insurance in the second quarter of the year was £460.
This is the lowest quarterly level in four years with the fall reflecting the impact of the Covid-19 lockdown with the majority of motorists making fewer car journeys.
The ABI’s tracker looks at the price consumers paid for their cover, rather than the price they were quoted.
It found that the average price paid for comprehensive motor insurance in Q2 2020 was £460, down £14 (3%) on Q1 2020.
Year-on-year, the average premium fell by £9 (2%) to stand at its lowest level since Q3 2016.
Laurenz Gerger, general insurance policy adviser at the ABI, 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.”