The number of motor insurance claims notified to insurers in the second quarter of the year fell significantly, according to figures published by the Association of British Insurers (ABI).
It is expected this fall in the figures is due to far fewer journeys in vehicles being made during lockdown.
Currently, the average price paid for comprehensive motor insurance stands at £460, a four-year low.
ABI’s figures showed that there were 324,000 new claims made in the second quarter of this year, a fall of 48% from the previous quarter.
The value of claims settled during the lockdown period also fell, but at a much slower rate than the number of new claims, with £2.1bn being paid out.
However, the value of the average claim paid jumped 27% on the previous quarter to £4,600, the largest quarter to quarter rise on record.
Lauren Hugher, ABI’s manager of general insurance, said: ‘‘Lockdown naturally led to far fewer vehicles on the roads, which is reflected in the fall in the number of motor claims.
“With the average price of motor insurance currently at a four-year low, insurers have been passing on cost savings to their customers.”
She added: ‘‘However, cost pressures remain, such as rising vehicle repair costs, reflecting ever more complex vehicle technology and increased vehicle theft.
“With personal injury costs also continuing to rise, it is important that the whiplash reforms scheduled to be implemented in April 2021 are not delayed further.’’