Covid Makes Britain’s Streets Safer: Insurance payouts drop by £ 4.4 billion, 41% fewer accidents and 26% fewer deaths than in 2019
- London motorists made fewer £ 693 million car insurance claims in 2020
- The number of accidents in the capital has fallen by almost 60 percent due to Covid-19
- Motorists in Scotland have had almost 37 percent fewer accidents
- The savings could reduce car insurance premiums for drivers in 2021
Covid lockdowns have saved UK motor insurers a fortune with 41 percent fewer accidents and 26 percent fewer deaths reported than in 2019.
Some insurance companies even offer motorists a discount if they have used their car significantly less due to Covid-19.
A survey by insurance comparison website Hello Safe found that auto insurance companies could save an estimated £ 4.4 billion in 2020 due to a dramatic decrease in the number of accidents compared to 2019.
All areas reported a significant decrease in motor vehicle insurance claims in 2020
Insurance companies have seen a dramatic decline in auto insurance claim payouts in 2020. They believe this is related to the ongoing Covid-19 bans
In Greater London the reduction is £ 693.3 million, while in rural areas the drop in accident rates is not as great.
In 2020, there were 59.9 percent fewer traffic accidents that resulted in damage in London, compared with a 36.7 percent decrease in Scotland.
Insurance companies believe the decline in the number of accidents is due to people following government orders to stay home and travel when necessary.
London, Birmingham, Manchester and Liverpool saw the largest decrease in the number of accidental damage, while Glasgow and Edinburgh showed less improvement.
Antoine Fruchard, CEO of Hello-Save.co.uk, said: “After the first national lockdown was eased, we thought life would be back to normal.
‘However, with this second wave of pandemics rocking the UK, road traffic has fallen again and insurance companies are again saving money on claims.
‘Given the rapidly deteriorating economic conditions, the British are likely to question their 2021 premiums.
‘You can expect a discount from them to compensate for a 2020 when it was often impossible to reach us by car.
Auto insurance companies will likely have to make efforts which could take the form of a one-time refund or a premium discount. The insurance industry is being watched in this very uncertain future. ‘
The Association of British Insurers told MailOnline, ‘The ABI’s Motor Premium Tracker shows that the average cost of comprehensive car insurance is a four-year low of £ 460. Our data from ABI members shows that the value of the average claim paid increased by 27 percent during the first national lockdown, despite fewer claims.
‘In the first three quarters of the year, reported vehicle damage cases fell by 25 percent compared to the same period last year. However, underlying cost pressures, including more expensive vehicle repairs, remain and the government needs to implement whiplash reforms.
“During the lockdown, many drivers used their vehicles less, but still need coverage for when they are driving and for the risk of theft and damage when the vehicle is not in use. Insurers have added and assisted motorists in the exceptional circumstances, including automatic coverage for those who use their vehicle to volunteer in the community, commute to work, and help those who are concerned about continuing to pay their premiums in installments. “
| Cities * | area | Decrease rate | Savings on withdrawals |
|---|---|---|---|
| London | London | 58.9% | £ 696,279,569 |
| Birmingham | West Midlands | 57.4% | £ 89,121,993 |
| Liverpool | northwest | 55.6% | £ 43,343,007 |
| Manchester | northwest | 56.1% | £ 41,856,199 |
| Bristol | southwest | 54.2% | £ 41,716,685 |
| Sheffield | Yorkshire Humber | 51.2% | £ 37,511,409 |
| Glasgow | Scotland | 43.7% | £ 35,994,401 |
| Leeds | Yorkshire Humber | 48.9% | £ 33,127,253 |
| Leicester | East Midlands | 45.1% | £ 28,585,045 |
| Edinburgh | Scotland | 42.5% | £ 27,914,313 |
| Coventry | West Midlands | 55.1% | £ 27,371,140 |
| Bradford | Yorkshire Humber | 50.5% | £ 24,537,348 |
| Cardiff | Wales | 47.9% | £ 22,597,953 |
| Nottingham | East Midlands | 53.3% | £ 22,367,068 |
| Belfast | Northern Ireland | 48.5% | £ 21,469,808 |
| Stoke-on-Trent | West Midlands | 55.1% | £ 20,544,001 |
| Southampton | South east | 55.7% | £ 20,181,524 |
| Derby | East Midlands | 52.3% | £ 18,576,722 |
| Kingston upon Hull | Yorkshire Humber | 46.7% | £ 18,142,358 |
| Newcastle upon Tyne | Northeast | 44.0% | £ 16,689,068 |
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