Car insurance costs drop to four-year low

As the lockdown measures began to be implemented, a drop in vehicle accident damage claims significantly dropped leading to a decrease in car insurance premiums. Current levels are at a four-year low. For consumers, this is a good time to get a good deal and shopping around for the best offer may be more rewarding than in previous years. People working from home are also advised to contact car insurance companies, even if their policies are not up for the renewal, to see if they can obtain a refund or reduction in remaining premiums. Government measures providing economic relief during the pandemic also have provisions which mandate the car insurance companies to provide greater flexibility to customers struggling to pay monthly premiums, if the financial hardship is caused by the pandemic. Drivers still need to remember that the car insurance is still mandatory, even if you are not driving the car.

Key Takeaways:

    • Car insurance prices have fallen to their lowest levels since 2016.
    • With fewer cars on the road due to the lockdown, car insurance claims have fallen allowing insurance companies to offer rebates, discounts and refunds on car insurance.
    • If your insurance company hasn’t offered discounts or refunds and your car usage has fallen now may be the perfect time to shop around for a better car insurance deal.

“Some insurers have already announced car insurance refunds to reflect the fact fewer of us have been on the roads during the lockdown.”

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Image by Randy Rodriguez from Pixabay

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