The average price motorists paid for their motor insurance in 2020 was at a four year low according to the ABI’s latest Motor Insurance Premium Tracker, published today. The ABI’s Tracker is the only survey that looks at the price consumers pay for their cover, rather than the price they are quoted.
- The average price paid for comprehensive motor insurance in 2020 was £465. This was down 1% on 2019, standing at its lowest level since 2016.
- The average premium paid in quarter 4, 2020, at £ 468, was down 3% on the same quarter 2019, although, reflecting the seasonal trend, was up 2% on quarter 3, 2020.
The latest figures come after an unprecedented year with motor insurers continuing to provide extra help to the UK’s 27 million private motorists during the pandemic including:
- Extending, until 30 April, the current pledge that if you must drive to and from your workplace because of the impact of Covid-19, your insurance policy will not be affected. You do not need to contact your insurer to update your documents or extend your cover.
- Also, similarly extending until 30 April their pledge that if you are using your own car for voluntary purposes to transport medicines or groceries to support others who are impacted by Covid-19, your cover will not be affected. You do not need to contact your insurer to update your documents or extend your cover. This applies to all categories of NHS Volunteer Responders, including transporting patients, equipment, or other essential supplies, as well as volunteers assisting with the vaccine rollout.
- Discussing with customers any options around adjusting policies and premiums to reflect fewer miles being driven during the lockdowns, as well as options for those concerned about being able to continue paying their premiums by instalments due to the pandemic.
Laura Hughes, ABI’s Manager, General Insurance, said:
“Despite a year like no other, it is good to see that during 2020 motorists continued to get the best deals in a competitive motor insurance market. In addition, the extra support that insurers continue to give to motorists during this uncertain and unsettling time is helping drivers adapt to this ‘new normal’”.