Cost of motor cover at four year low

The average price paid for motor insurance in the second quarter of the year was at its lowest quarterly level in four years, according to the ABI’s latest Motor Insurance Premium Tracker, the only survey examining the price consumers pay for cover, rather than the price they are quoted.

The fall to £460 reflects the impact of the COVID-19 lockdown with most motorists making far fewer car journeys.

The figures, published today, show the price down £14 (3%) on the first quarter of the year.

General insurance policy adviser at the ABI, Laurenz Gerger says motorists have clearly been benefitting from reduced road accident frequency during lockdown, but that should not stop them from shopping around for the best deal moving forward.

"In addition to the average premium falling to the lowest level in years, motor insurers have provided extra support to their customers by waiving any requirements to extend cover for millions of workers who may need to drive to different locations, and people who want to help their communities by transporting medicines or groceries to support those affected by coronavirus," he explained.

"However, continued cost pressures, including rising repair bills and the delay in introducing personal injury reforms, mean that motorists will need to continue to shop around to get the best deal for their needs.”

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