Covid lockdowns have saved Britain’s motor insurers a fortune with reports of 41 per cent fewer accidents and and 26 per cent fewer deaths than compared to 2019.
Some insurance companies are even offering motorists a rebate if they have been using their car significantly less due to Covid-19.
A survey by insurance comparison website Hello Safe has found that car insurance companies could save an estimated £4.4bn during 2020 due to a dramatic fall in the number of accidents when compared with 2019.
All areas have reported significant reductions in the level of car insurance claims in 2020
Insurance companies have noticed a dramatic fall in the number of payouts for car insurance claims in 2020. They believe this is linked to the ongoing Covid-19 lockdowns
In Greater London, the reduction is £693.3 million, while in rural areas the fall in accident numbers is not as great.
During 2020 there have been 59.9 per cent fewer road traffic accidents in London resulting in claims compared with a reduction of 36.7 per cent in Scotland.
Insurance companies believe the fall in the number of accidents is a result of people heeding the government’s instruction to remain at home and travel when necessary.
London, Birmingham, Manchester and Liverpool showed the greatest reduction in the number of accident claims while Glasgow and Edinburgh showed less of an improvement.
Antoine Fruchard, CEO of Hello-Save.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.
‘A discount may be expected by them, to compensation a 2020 year during which it has often been impossible to get our 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.’
|Cities*||Region / Country||Decrease rate||Savings on payouts|
|Kingston upon Hull||Yorkshire Humber||46,7%||£18,142,358|
|Newcastle upon Tyne||North East||44,0%||£16,689,068|