Yahoo Finance Motor insurance premiums were at a four-year low in 2020
The average price of motor insurance in the UK was at a four-year low in 2020, figures suggest.
UK drivers paid about £465 ($638) for comprehensive motor cover last year, according to ABI’s latest Motor Insurance Premium Tracker.
This is a decrease of 1% since 2019, and the lowest average price since 2016, the data shows.
What's more, the average premium paid the final quarter of the year stood at £468 – 3% less than the same period on 2019.
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However, reflecting seasonal trends, this was an increase of 2% on the third quarter of the year.
ABI’s tracker is the only survey that looks at the price consumers actually pay for their cover and not the price they are quoted.
These figures follow “an unprecedented year, with motor insurers continuing to provide extra help to the UK’s 27 million private motorists during the pandemic,” ABI said.
As a result of the COVID-19 pandemic, insurers pledged that those who now have to drive to and from work — to avoid public transport, for example – will not see their insurance policy affected.
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Similarly, those who use their car to transport medicines or groceries to support others who are affected by the pandemic — people who are self-isolating or shielding, for example — will not have it affect their insurance policy.
What's more, these drivers do not have to contact their insurers to update their documents or extend their policies.
“Despite a year like no other, it is good to see that during 2020 motorists continued to get the best deals in a competitive motor insurance market,” said Laura Hughes, ABI’s general insurance manager.
“In addition, the extra support that insurers continue to give to motorists during this uncertain and unsettling time is helping drivers adapt to this ‘new normal.”
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