Car insurance claims fall – but premiums don’t follow

Companies saved millions as vehicles were used less during UK lockdown, but failed to pass this on

As cars stood idle in people’s driveways and roads were largely deserted during the UK’s Covid-19 lockdown, the number of claims made on motor insurancepolicies fell sharply.

However, this has not necessarily resulted in lower car insurance premiums. According to some industry estimates, insurers saved more than £1bn during the lockdown but have only passed on some of their savings to customers who have been off the road for months.

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