Motor premiums to fall 6%
Premiums for motor insurance is expected to drop by six per cent this year, which equates to £27 per policy.
The decrease is attributed to fewer miles driven during Covid-19, resulting in fewer claims, as well as the whiplash reforms which came into effect on 1 June.
This is according to EY’s latest Motor Insurance Results.
Tony Sault, UK general insurance market lead at EY, said: “The drop in claims last year meant insurers were able to pass on savings to their customers through reduced premiums in quarter one 2021.”
He continued: “As commuting patterns change, perhaps for good, we expect the downward shift in car usage and claims to continue – albeit not to the level seen in lockdown.”
