By Ranamita Chakraborty
According to recent research from data insight specialist Consumer Intelligence, average premiums for UK motorists started to fall following COVID-19 lockdown measures in the country.
This was despite the fact that motor insurance premiums had an overall increase of 2.7% in the last 12 months.
“With fewer cars on the road and the subsequent reduction in claims, it seems some of those savings may be making their way back to customers via reduced premiums,” said Consumer Intelligence pricing expert John Blevins.
Average premiums now stand at GBP876 ($1,076) following a 1.4% reduction in the last three months which was most likely a result of COVID-19.
For this research, the cheapest premiums were calculated by comparing the prices offered for 3,600 people by all the major price comparison sites and major direct insurers. The top five prices for each person were compared to the previous month’s top five and then these variations averaged to produce the index.
However, the research found differences in motor premiums based on the age group and location of the insured person.
Average premiums reduced across all age cohorts in the past three months – 1% for under 25, 1.4% for 25-49 and 1.5% for over 50.
Although London remained the most expensive region in the UK for car insurance, it recorded a reduction of 0.6% in the past three months.
The south west region of the UK however saw the largest price reduction of 3.3% in the past three months (2.8%).
“Regional pricing will be dictated by claims experience and crime rates. Both of which has fallen during the current pandemic,” said Mr Blevins.
Asia Insurance Review