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ABI – Cost of motor insurance remains at four year low

Link(s): https://www.abi.org.uk/news/news-articles/2020/10/cost-of-motor-insurance-remains-at-a-four-year-low-according-to-abis-latest-figures/?timeout=s

Context

The ABI has confirmed that the analysis of its latest Motor Insurance Premium Tracker shows that the average price paid by motorists remains at a four-year low. The ABI’s Tracker is the only survey which looks at the actual price paid by motorists rather than the price quoted.

Key points to note

  • The average price paid for comprehensive motor insurance in the third quarter of 2020 was £460 which was the lowest level in four years. This average price remains unchanged from the previous quarter and is £8 lower than in the comparative quarter of 2019.
  • ABI members have extended their extra Covid support to the 27 million private motorists in the UK to the end of the year.
  • If a motorist needs to drive to and from work because of the impact of Covid or if a motorist is an NHS volunteer responder, their insurance policy will not be affected.
  • There is no need to contact an insurer to update documents or extend cover to take advantage of these pledges of extra support.
  • These temporary pledges of support remain under review and a review of home and motor insurance will take place in advance of 31 December 2020.
  • If a policyholder has changes in their driving patterns which are likely to continue into the next 12 months and are renewing their motor insurance policy, this should be discussed with their insurer.