Car insurance prices fell by an average of £56 since February as driver behaviour has dramatically changed due to the pandemic. Average prices had also fallen by £33 on average since March when lockdown restrictions were introduced.
The declines have put average car insurance prices below £700 with a new average calculated at £697 per year.
Discounts and refunds have been offered by several firms in recent weeks, while many have reduced monthly premiums for customers or switched motorists onto alternative agreements.
According to Compare the Market young drivers are set to benefit the most from the dramatic price cuts.
Younger motorists between the age of 17 and 24 had seen average premiums fall by £69 in April and £154 since February.
A regional breakdown of price reductions found the South East recorded the highest decline in car insurance costs between March and April.
Prices were down by seven percent as average premiums remained at more than £600.
Northern Ireland and Scotland also recorded seven percent price reductions as overall costs for motorists fell.
London saw a three percent reduction but remained the area with the most expensive car insurance agreements on average.
Premiums stand at an average of £1,049 per year in the capital which is more than £400 more expensive than most other regional averages.
However, data from MoneySuperMarket claims car insurance prices are at their lowest level in five years.
Their analysis says insurance preces were at their lowest level in April for five years and said coronavirus was likely a “factor” in the price reductions.
According to the group, car insurance prices fell from £485 to £462 per year by the end of April as the virus took hold.
Dave Merrick, car insurance expert at Money Super Marketsaid prices increased marginally in the first quarter of 2020 before prices fell.
He said: “Our latest research shows that April’s prices are at their lowest levels in five years.
“Whether there’s any link to the coronavirus crisis is difficult to say for certain, but it is likely to be a factor.
“An unintended consequence of the lockdown has been fewer cars on the roads and fewer accidents, so it’s fair to assume that this could result in reduced prices.”
Mr Merrick urged motorists to switch their provider before their policy renewed to ensure motorists did not see an increase in their costs.
He claimed switching policies could save motorists up to £270 as customers would receive the best prices available at a new firm.
Published at Tue, 26 May 2020 06:18:00 +0000