Covid makes Britain’s roads safer with £4.4bn fewer claims


Covid makes Britain’s roads safer: Insurance pay outs drop by £4.4bn with 41% less accidents and 26% fewer deaths than in 2019

  • London motorists have made £693m-worth fewer car insurance claims in 2020
  • Accident levels in the capital have fallen almost 60 per cent due to Covid-19 
  • Motorists in Scotland have recorded almost 37 per cent fewer accidents 
  • The savings could see car insurance premiums in  2021 reduce for motorists 

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

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.’

The Association of British Insurers told MailOnline: ‘The ABI’s Motor Premium Tracker shows that the average cost of comprehensive motor insurance is at a four year low of £460. Our data from ABI members shows that during the first national lockdown, the value of the average claim paid rose by 27 per cent, despite fewer claims. 

‘In the first three quarters of the year there has been a 25 per cent fall in motor claims notified compared to the same period in 2019, but underlying cost pressures remain, including more expensive vehicle repairs, with the need for the Government’s whiplash reforms to be implemented.

‘During lockdown many motorists have used their vehicles less, but will still have needed cover for when they did drive, as well as for the risks of theft and damage when the vehicle was not in use. Insurers have and continue to give extra support to motorists given the exceptional circumstances, including automatically covering those using their vehicle for community volunteering, commuting to work, as well as helping those worried about being able to continue paying their premiums by instalments.’

Regional reductions in the number of car insurance claims made in the UK 
Cities* Region / Country Decrease rate Savings on payouts
London London 58,9 % £696,279,569
Birmingham West Midlands 57,4% £89,121,993
Liverpool North West 55,6% £43,343,007
Manchester North West 56,1% £41,856,199
Bristol South West 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 North East 44,0% £16,689,068

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