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Millions of Motorists to see Post-lockdown Rise in Car Insurance Premiums

Up to 10 million drivers throughout the UK could be expected to pay more for their car insurance premium, especially as driving habits start to shift due to lockdown restrictions being slowly lifted.

Millions of workers are starting to return to their place of work, with the government recommending commuters to avoid public transport where possible. This has meant that those with vehicles are encouraged to make use of them.

Survey findings highlight the point that many more people plan to use their car to get around, instead of walking, cycling or using public transport. This will be done as a precautionary measure to protect themselves from the coronavirus. Car insurance experts believe that this will increase premiums with more vehicles on the road.

Research shared with Utility Saving Expert suggests that the number of people expecting to travel by car has doubled since lockdown measures were implemented. This is equivalent to an additional 10.5 million cars on public roads. One reader who wished to remain anonymous wrote in saying “I’d rather get behind the wheel and avoid the virus, even if it means being late to work […] my boss will understand”.

For motorists who did not previously use their vehicle to get to their place of work, a change of policy will be required, also raising the annual premium. Those with a social, domestic and pleasure (SDP) policy will need to extend it to add commuting (SDP+C). It is estimated that a typical customer will have to pay an extra £20 for an SDP+C policy.

Cars are important transportation tools, and will no doubt reduce the chances of viral infection compared to buses and trains. This will cost drivers more, with the added insurance cover and fuel costs, some may be content with public transport, especially when finances are already stretched. However, public transport should be avoided where possible, according to the latest government advice.

Premiums have fallen in recent months, with a reduced number of vehicles on the road, although this is set to change. Policyholders will need to include cover for commuting to and from work. Busier roads will surely mean costs increase due to the higher risk factor. Those who are unable to work from home and have to travel long distances will also need to pay for the additional fuel, especially if public transport is out of the question.

Insurance experts predict that the annual cost of a typical car insurance policy will increase, as almost 20% of UK households think that their car will be used even more than it was prior to the coronavirus pandemic. Insurance premiums are based on a number of risk factors, this includes the chances of being involved in an accident. Extra cars on the road increases the risk of collisions, raising premiums.

Economic uncertainty has meant that it isn’t as simple as calling up insurers and paying the added amount for sufficient cover. Individuals and families are having to prioritise every household expense as incomes take a hit, millions are benefiting from the government’s coronavirus job retention scheme. Although, this won’t last forever.

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Chris Richards

Chris is a personal finance specialist who founded Council Tax Advisors in 2012, assisting over 250,000 people with their Council Tax debt. Observing that many clients overpaid on utilities, he launched Utility Saving Expert in 2014, an energy price comparison site. In 2016, the platform expanded its services to include consumer and business insurance comparisons. Utility Saving Expert stands out with its commitment to social responsibility, donating 10% of net profits to fuel poverty charities, underscoring its dedication to both client value and community support.

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