Motorists would no doubt welcome some reasonably good news considering the troubled times that many people have been going through from the early part of 2020 to date due to the pandemic caused by COVID-19. Well, if you were to peruse the MoneySuperMarket Car Insurance Price Index, you will notice that the average cost of fully comprehensive car insurance between the first two quarters of this year have been very similar with only a 7 pence variance.
Premiums for such cover have gone up in the second quarter of 2021 by the above amount to an average of £417 per annum. Yes, premiums have risen but only by a few pence. However, what is more pleasing is that premiums have dropped by an average of in excess of £60 per annum in the 12 months to the first quarter of 2021. We are sure that you will agree that is a large reduction.
Of course, the above figures relate to the average cost of insuring the likes of a normal family car – not a classic car. However, it would be great if a similar pattern has been seen with classic car insurance. That would be even better news for classic car enthusiasts.
One of the reasons why premiums have fallen in the year to the second quarter of 2021 will be due to the pandemic. After all, a large number of people have been working from home as a result of which they have not been using their cars to commute to work. With fewer cars on the roads here in the UK, this has no doubt led to a reduction in the number of road traffic accidents meaning that car insurance companies have had to pay out less in claims and, in some cases, have been able to pass on some of the savings to their policyholders by reducing or containing their motor insurance premiums.
