- Fewer accidents lead to overall claim payouts falling by almost one fifth
- Average personal injury claims rise by 13%
- Motor insurance premiums remain at a four year low
- Insurers continue to give additional benefits to motorists
The number of motor insurance claims settled by insurers in 2020 fell by 19% according to figures published by the ABI (Association of British Insurers). This fall reflected the Covid lockdowns during the year, which led to significantly fewer vehicle journeys. Total payouts, at £8.3 billion, reduced by 6% on the previous year while the average personal injury payout rose 13% on the previous year to £12,100.
The good news is that during the same period, the average price paid for private comprehensive motor insurance remained at a four-year low with an average of £465.
These latest figures come after an unprecedented year for insurance customers, with motor insurers continuing to provide extra help to the UK’s 27 million private motorists during the pandemic, including the pledge that if you must drive to and from your workplace because of the impact of Covid-19, your insurance policy will not be affected. You do not need to contact your insurer to update your documents or extend your cover.
Also, if you are using your own car for voluntary purposes to transport medicines or groceries to support others who are impacted by Covid-19, your cover will not be affected. You do not need to contact your insurer to update your documents or extend your cover. This applies to all categories of NHS Volunteer Responders, including transporting patients, equipment, or other essential supplies, as well as volunteers assisting with the vaccine rollout.
These pledges, due to finish in mid March, have now been extended to 30 April.
Discussions have also taken place with customers about options around adjusting policies and premiums to reflect fewer miles being driven during the lockdowns, as well as options for those concerned about being able to continue paying their premiums by instalments due to the pandemic. One insurer has refunded £110 million to its car and van insurance customers reflecting that they had driven less during the lockdowns.
Laura Hughes, ABI’s Manager, General Insurance, said: “The pandemic has forced many motorists to change their driving habits. Predictably, lockdowns have led to far fewer vehicles on the roads, reflected in the fall in the number of motor claims. During the pandemic insurers have given additional support to their customers, including options for reduced mileage and help for those struggling to pay their premiums by instalments. It is good to see that throughout an uncertain year, motorists continued to get the best deals from a competitive motor insurance market.”