Motor Insurance Premiums Up Despite Low Claims Low Miles

Data from the Association of British Insurers (ABI) shows motor insurance claims dropped by 19% last year.

Due to covid-19 restrictions people made less journeys in 2020 resulting in lower accident numbers and claims.  Despite the fall in claims, the average price for new comprehensive car insurance only fell by 1%, which is the lowest fall in 4 years.

Even though the country was 'off the road' and claims being down 19% on the previous year, there were still 2.1 million claims settled.

Average pay-outs for personal injury claims did rise, however a cut in total pay-outs made by insurers where down 6% to £8.3 billion.

Some insurers had been amending existing policies offering rebates to insurers due to lower mileage and offered extra services without further charges, such as automatic cover for drivers going to and from work or delivering medicines or groceries. 

Drivers that had been financially impacted have also been given the option to pay their insurance premiums in instalments.

Comment

We can only speak from personal experience.  Over the last year, both directors of this firm have only driven around 300 miles each (we know this from recorded MOT mileage figures) yet our motor insurance premiums increased and did not fall unlike the ABI figures.