The average price motorists paid for their motor insurance in Q1 2021 showed its biggest quarterly fall, currently standing at its lowest level since 2016, according to the Association of British Insurers’s (ABI) latest Motor Insurance Premium Tracker.
Comprehensive motor insurance policies had an average price of £436 in Q1 2021, its lowest level in nearly five years.
This was down £32 (7%) on Q4 2020, the biggest quarter-on-quarter drop since the ABI started collecting the data in 2012.
The ABI’s latest Motor Insurance Premium Tracker also revealed the average premium paid in Q1 2021 fell 8% on the same quarter in 2020.
According to the ABI, the Q1 2021 fall in part reflects insurers passing on cost savings from fewer claims settled during previous national lockdowns, and fewer young drivers, who are likely to pay higher motor premiums, on the road due to lockdown driving test restrictions. It comes despite the continued cost pressures for insurers of rising repair bills
Laura Hughes, manager of general insurance at ABI, said: “While the national lockdown during the period may have led to fewer road journeys, it is good to see that during the first quarter of the year motorists continued to get the best deals from a competitive motor insurance market.”
“The next few months will see significant developments in the motor market, as we cautiously emerge from the pandemic, returning to more usual driving patterns, and with the introduction, at the end of May, of the official injury claims portal that will simplify the whiplash claims process, while ensuring proportionate compensation for genuine claimants.”
“And while underlying cost pressures around rising repair bills will remain, the market will stay competitive, enabling motorists to shop around for the best deal for their needs.”