UK car insurers have saved more than £4bn this year as a result of changes to driving routines caused by coronavirus lockdown measures, estimates by hello-safe.co.uk suggest.
The price comparison site's data shows that car insurance claims plummeted by 49.8% this year, saving insurers approximately £4.4bn.
Overall, car accidents declined by 41.2% when compared to 2018, resulting in 53.7% fewer repairs paid for by insurers, and a 25.5% fall in deaths by accident.
The findings come after two national lockdowns in England, multiple local lockdowns, tier-levels restrictions systems and a whole range of other measures brought on by COVID-19.
“After the first national lockdown was eased, we thought that life would go back to normal,” said Antoine Fruchard, insurance expert and CEO at hello-safe.co.uk.
“However, with that second pandemic wave that is shaking the UK, road traffic has gone down again, and again the insurance companies save money on claims. With fast-deteriorating economic conditions, Brits are likely to question their 2021 premiums.”
The latest findings are based on data from more than 500,000 car insurance policyholders from all UK regions.
Greater London accounts for the highest savings, with a 58.9% drop in car-related claims resulting in a £693m reduction in the sums paid by insurers to policyholders.
Birmingham and Liverpool complete the top three regions with the highest savings, with the former recording 57.4% fewer claims, saving insurers £89m, and the latter experiencing a 55.6% fall in claims, saving £43m.
Fruchard said that some policyholders may now expect a discount from their insurer to compensate for a year during which it has often been impossible to get out in their car.
He continued: “Car insurance companies will probably have to make an effort, which could take the shape of a one-shot refund or a premium discount. In this very uncertain future, the insurance industry will be watched.”
Image credit: iStock
Author: Chris Seekings
