Motor insurance policy prices are at a seven year low thanks to a 15 per cent drop in premiums brought on by lack of driving and fewer accidents.
Insurance premiums have dropped across the nation with the average cost of fully comprehensive insurance falling by £73.32 to £417.06 - the biggest drop since premiums were recorded.
A lack of competition for insurance sales has led to many of the major insurers fighting for business and that is great news for those who are looking for a premium can take advantage of some great prices. The research, which has been put together by MoneySupermarket has found that for once, younger drivers are feeling the benefits, with 17-19 year-olds seeing a 37 per cent drop in premiums since lockdown. Though exactly how many of that age group can get to pass their test with a five month wait might explain why the insurers are seemingly so generous.
“Extra competition for sales is causing insurers to lower premiums, as fewer claims means that insurance is more profitable and providers can therefore reduce prices and pass this benefit on to customers.
“It is great to see these savings being passed onto customers, however it is likely the bubble will burst at some point as lockdown eases and driving – as well as accidents and claims – start to rise again.
“The latest view is that restrictions will be eased by the end of June this year and many people will return to the workplace.
“It is unclear how many of those who have been working from home during the last year will potentially reduce their time in the workplace. If there is a significant shift, it could mean that we can enjoy lower premiums for longer.”