Comprehensive car insurance prices in the UK fell by around 5% in the second quarter of 2020. This is the biggest quarterly decrease since early 2018. Although, pricing trends and future claims post coronavirus remain uncertain, according to a recent survey. Third party only, and third party, fire and theft policies also saw similar drops.
According to price comparison site, Utility Saving Expert, data shows that the average premium for a fully comprehensive policy is now £770 pounds.
Insurers across Britain, who are already facing considerable challenges with rising costs and stricter environmental regulations, are now also looking at a hit to cost premium pricing. This is largely as a result of reduced accidents and claims being pursued. Though, In the months ahead, millions of drivers could see their premiums rise.
Pricing data submitted by customers to insurer Admiral Group is what the index figures are based upon. Even though insurers took pricing action during the quarter, not all surface-level changes in the market price were as they should be.
As the country moves past lockdown restrictions, roads up and down the country are starting to become busier. Because of this, insurance firms are attempting to predict the number of claims and adjust their pricing accordingly. This will hopefully be before the full-scale impact of the coronavirus crisis is felt, and ideally before both medium and long-term frequency and severity trends are known.
New car registrations in the UK were down by around 35% in June, compared to figures from the previous year. This is the smallest decrease since February, partly due to many dealerships reopening after lockdown restrictions were eased. Nevertheless, the UK car industry could potentially lose one in six jobs, according to warnings by one trade body.
The country’s Financial Conduct Authority (FCA) granted borrowers and users the opportunity to freeze or reduce payments for debts. This is for an additional three months, and has been put forward in an attempt to support car finance and high cost credit customers. The changes were announced this Wednesday (15 July).
Companies such as Admiral, RSA Insurance Group, esure, Direct Line and Hastings offer motorists cover in Britain’s highly competitive insurance sector. Drivers looking to obtain a cheaper policy can do so by taking advantage of the following steps:
- Pay for the premium annually rather than monthly
- Buy a car in a lower insurance group
- Reduce annual mileage
- Increase voluntary excess
- Consider a telematics policy