Motor insurance sinks to five-year low
Motor insurance is at a five-year low, according to the ABI’s latest Motor Insurance Premium Tracker.
It found that for the second quarter of the year the average price paid for comprehensive motor insurance was £430, down £6 on the previous quarter and £30 over the last year.
Meanwhile, over the first six months of this year the average motor premium has fallen by £38 since quarter four last year.
Laura Hughes, ABI’s manager, General Insurance, said: “The fall in the average motor premium clearly shows that millions of drivers continue to benefit from cost savings made by insurers during the lockdowns. It will be interesting to see if there is a rise in motor claims as we emerge from the pandemic and road traffic continues to increase.
“We will also be watching closely the impact of the Official Injury Claims portal launched in May which will simplify the whiplash claims process, while ensuring proportionate compensation for genuine claimants. And while underlying cost pressures around rising repair bills will remain, the market will stay competitive, enabling motorists to shop around for the best deal for their needs.”
