Auto insurance claims were cut in half during the blockade
Britain filed nearly half of its usual auto insurance claims between April and June this year, as coronavirus blocking measures reduce commuting to work and storing cars in garages.
According to the British Insurers Association (ABI), drivers made 324,000 new claims on their auto insurance in the second quarter of this year. This is 48% less than the 678,000 claims registered in the past three months.
If the British wanted, they got a bigger number. Average claims value rose 27% to £ 4,600, the biggest growth on record for the quarter.
Part of the increase in the average claim value may be due to continued vehicle theft during closure. While road traffic at lock depth has decreased by 73% to levels not seen since 1955, vehicle crime remains unchanged.
Motorcycle insurance specialist Carol Nash found that as of March police had recorded 32,250 crimes, including vehicle theft and vehicle damage. This has only decreased by 10% since February, 14% below the very high levels seen in March 2019 and 8% below the March 2018 figures, despite the fact that traffic has halved.
Mark Cooper, Product Manager at Carole Nash, said: “We have seen a consistently high number of total theft claims, not only for vehicles during the blockade (cars, trailers and motorbikes), but also vehicle parts. “
While the UK gave up public transport and sought distraction and exercise during the blockade, claims for personal injury, especially for cyclists and pedestrians, rose to 20% instead of the usual 10%. find More Than insurance companies.
Auto theft and personal injury are some of the most expensive damage insurance. ABI has previously determined that the increase in repair costs following the closure of several garages also contributed to higher claims.
This means that while fewer claims were paid this spring compared to the first quarter of this year, payments fell less than claims. A total of £ 2.1 billion in auto insurance was paid out between April and June, according to ABI, a 5% decrease from January to March.
This lower claim fee reduces auto insurance costs. Full auto insurance is now averaging £ 460, a four-year low and a 3% decline year-to-date.
Laura Hughes, General Insurance Manager of ABI, said: “Lockdowns of course result in significantly fewer vehicles on the road, which is reflected in a reduction in the number of car claims. As the average car insurance cost is currently the lowest in four years, insurance companies are providing savings. them to their customers. “”
However, he said insurance costs remained high, limiting price cuts.
“There are still cost pressures, such as the increase in vehicle repair costs, due to the sophistication of cars and the rampant theft of vehicles,” he said.
The cost of personal injury has also continued to rise, and the government should implement surprise reforms in April as planned, he said. A change to cut the auto insurance industry’s annual spending on household claims, many of which are bogus, by £ 2 billion was delayed a year ago because of the pandemic.