UK motor premiums hit five-year low

The Car Insurance Price Index in association with Willis Towers Watson has found that the average comprehensive car insurance premium for Q2 2021 was £522, down by 12% (£71) on the same period last year. According to the index, this is the lowest average figure for five years.

Graham Wright, UK lead of P&C personal lines pricing at Willis Towers Watson, said: “Fewer claims during successive COVID-19 lockdowns have sustained the current downward trend for premiums across the board, with insurers continuing to pass on savings to customers.

“However, with more cars expected to return to the road when lockdown rules are eased further from 19 July, the increase in miles driven risks pushing premiums in the opposite direction towards pre-pandemic prices.”

He added: “Even without the pandemic, the regulatory reforms sweeping across the sector, including the FCA’s ban on general insurance price walking and Ministry of Justice whiplash reforms, are creating simultaneous pressure for prices to both rise and fall respectively. With so many challenges in play at the same time, the personal lines industry is braced for one of the most turbulent times in its history.”

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