Motor premiums down to 2016 levels
The average price motorists paid for their motor insurance in the first quarter of 2021 fell to its lowest level since 2016.
According to the ABI’s latest Motor Insurance Premium Tracker, the average price paid for comprehensive motor insurance in the first quarter of this year was £436. This was down £32 on the last quarter of 2020.
Meanwhile, the average premium paid in quarter one fell by eight per cent on the same quarter last year, and the average price paid for motor insurance is the lowest it’s been in nearly five years.
The fall reflects cost savings from fewer claims settled during previous national lockdowns, and fewer young drivers on the road due to lockdown driving test restrictions.
Laura Hughes, ABI’s manager, General Insurance, said: “The next few months will see significant developments in the motor market, as we cautiously emerge from the pandemic, returning to more usual driving patterns, and with the introduction, at the end of May, of the official injury claims portal that 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.”
