Car insurance claims were down last year because of pandemic lockdowns

Darren Cassey, PA Motoring Reporter
·1-min read

The number of motor insurance claims that were settled by insurers last year was down 19 per cent as coronavirus lockdowns drastically reduced vehicle use.

The 2.1 million settled claims resulted in the amount of payouts falling six per cent on the previous year to £8.3 billion.

Interestingly, though, despite most other figures falling, the average personal injury payout rose 13 per cent. Government statistics indicate that traffic numbers were down 14 per cent in the year to June 2020.

The figures come from the Association of British Insurers (ABI), which also pointed out that the average price paid for private comprehensive motor insurance remained at a four-year low.

Laura Hughes, ABI’s manager of 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.”

Insurers have been providing extra support to motorists during the pandemic, for example the current pledge that until April 30, those who must drive to and from work because of the impact of Covid will not see their policy affected.

Furthermore, those using their vehicle for voluntary support during the pandemic will not have to update their policy to reflect this, while drivers are also being given options to adjust their policies to reflect the fewer miles being driven as well as supporting those struggling with monthly payments.