Car insurance prices have fallen by 6% in the UK this year as drivers stayed off roads during the coronavirus lockdown, research from Moneysupermarket.com has found.
The price comparison website's data shows that the average cost of comprehensive car insurance fell from £503 in the final three months of last year to £475 in the second quarter of 2020.
Prices have continued on a downward trend in 2020, with separate figures from the AA showing road traffic levels dropping by 65% at the height of lockdown.
“Our research shows that it’s likely coronavirus is contributing to the fall in car insurance premiums,” said Moneysupermarket insurance spokesperson Dave Merrick
“With fewer cars on the road, there have been fewer claims, exerting a downward pressure on prices.
“It’s a pressure that has far outweighed other factors – such as the UK’s departure from the EU – that some expected could have led to premium prices increasing.”
The £475 average price tag for comprehensive car insurance is down 2% from the £486 cost one year ago.
The data also shows that premiums have fallen 25% year-on-year for drivers aged between 17 to 19, down from £1040 to £777.
Moneysupermarket said that this could be due to a reduction in new drivers able to take their test during the last quarter.
Drivers aged between 40 and 49, however, saw the average cost of a policy rise by 4% year-on-year to £420 – the largest amount paid by any age group.
Looking at regional variations, drivers living in East London now pay most for premiums on £986, almost double the UK average, while motorists in the Shetlands Islands have experienced the biggest fall.
“Quite how long this downward trend will continue is hard to say,” Merrick continued. “As we emerge from lockdown, roads will become busier and claims will start to rise again – which may well lead to prices rising.”
Author: Chris Seekings
Image credit: iStock