Motor

UK car insurance companies save £4.4bn due to Covid-19

Car insurance companies in the UK could save around £4.4bn by the end of 2020 due to Covid-19.

In light of the pandemic affecting the general public’s daily routine, insurer Hello Safe’s survey analysing the car insurance sector this year has reported a 49.8% decrease in the number of car accident claims.

Greater London accounts for the highest savings in the country, with a 58.9% overall drop in the number of car-related claims.

Antoine Fruchard, insurance expert and CEO of Hello-Safe.co.uk, said: “After the first national lockdown was eased, we thought that life would go back to normal.

“However, with that second pandemic wave that is shaking the UK, road traffic has gone down again, and again the insurance companies save money on claims. With fast-deteriorating economic conditions, Brits are likely to question their 2021 premiums.”

He added: “A discount may be expected by them, to compensate for a 2020 year during which it has often been impossible to get out with the car.

“Car insurance companies will probably have to make an effort, which could take the shape of a one-shot refund or of a premium discount. In this very uncertain future, the insurance industry will be watched.”

 

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