Record drop in Q1 motor premiums

The Association of British Insurers said the average price paid for comprehensive motor insurance in Q1 2021 was £436. This was down £32 (7%) on Q4, 2020 and was the biggest quarter-on-quarter drop since the ABI started collecting the data in 2012. The ABI’s Motor Insurance Premium Tracker records the price paid and not the price quoted.

Laura Hughes, manager, general insurance at the ABI, said: “While the national lockdown during the period may have led to fewer road journeys, it is good to see that during the first quarter of the year motorists continued to get the best deals from a competitive motor insurance market.

“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.”

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