Auto Insurance Premiums Record Biggest Quarterly Drop in First Quarter 2021 – ABI | Latest news
The average price paid by motorists for their car insurance fell by £ 32 between the fourth quarter of 2020 and the first quarter of this year, indicating the largest quarterly decline in annual premiums since 2012, according to a study released today (30 April 2021) by ABI.
The professional association Auto insurance premium tracking found that the average price paid for full car insurance in the first quarter of this year was £ 436 – this is a 7% quarter-over-quarter drop, meaning the price average auto insurance is at its lowest level since 2016.
It is also the largest quarter-over-quarter decline since the ABI began collecting this data in 2012.
ABIs Tracker would be the only survey that examines the price consumers pay for their coverage, rather than the price they are offered.
Getting out of the pandemic
ABI general insurance manager Laura Hughes said that while pandemic lockdowns may have reduced the number of road trips, it is “good to see that in the first quarter of the year, Motorists have continued to get the best deals on competitive auto insurance. market”.
According to the ABI, the lower prices reflect insurers passing on cost savings from lower claims settled in previous national lockdowns, despite continued cost pressures from rising repair bills.
Another contributing factor is the decrease in the number of young drivers on the road due to locked out driving test restrictions – this demographic is more likely to pay higher auto premiums.
Hughes continued, “The next few months will see significant developments in the automotive market as we cautiously exit the pandemic, returning to more usual driving patterns.
And the introduction at the end of May of the official injury claims portal will streamline the whiplash claims process while ensuring proportionate compensation for genuine claimants.
“While the underlying cost pressures from rising repair bills remain, the market will remain competitive, allowing motorists to seek out the best deal for their needs.”
The UK government’s official injury claims portal goes into effect on May 31.