UK car insurance premiums in second quarter fall to lowest level since early 2016: survey
The cost of a comprehensive car insurance policy in Britain fell 12% in the second quarter to its lowest level since early 2016 due to lockdowns from COVID-19, although it may rebound to levels of ‘ahead of the pandemic as restrictions ease, according to an investigation Wednesday.
UK motorists are now required to pay 522 pounds ($ 709.45) on average, according to the latest index from price comparison site Confused.com in association with insurance broker Willis Towers Watson.
This is the second-largest annual decline since 2014, and auto insurance premiums have now fallen for three consecutive quarters. However, they could start to increase as most movement restrictions have been lifted in Britain.
Even without the pandemic, regulatory reforms across the industry are putting pressure on prices, said Graham Wright, UK head of P&C personal line pricing at Willis Towers Watson.
Britain’s financial regulator said in May it would take action to protect consumers from so-called loyalty penalties in auto and home insurance, which would save around £ 4.2 billion (5.95 billion dollars) over 10 years.
“With so many challenges at play at the same time, the personal insurance industry is gearing up for one of the most turbulent times in its history,” said Wright.
Central West London remains the most expensive place in the UK to buy car insurance, with an average premium of 981 pounds according to the survey, while Llandrindod Wells in Wales offers the cheapest with an average of 319 lbs.
($ 1 = 0.7358 lb) (Reporting by Yadarisa Shabong in Bangalore; Editing by Ramakrishnan M.)
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