Insurance Claims Fall Hugely
by Becky Harrison |
posted 18 March 2021
Enquiry data submitted to the website comparethemarket.com show car insurance claims fell by a substantial 26% in 2020, compared to the previous year, as lockdowns and social distancing restrictions forced drivers to reduce journeys.
The findings reveal that since national lockdowns began in response to the COVID-19 pandemic, the number of car insurance claims reported dropped sharply, and has remained significantly lower than in previous years. April 2020, the first full month of the first lockdown, saw the steepest drop. Claims reported for incidents occurring in April 2020 plummeted by a huge 63% compared with the month before and decreased by 69% year-on-year.
Claims over the winter months, which historically see a spike due to increased Christmas traffic and tricky weather and road conditions, were also down. Claims reported as occurring during the second lockdown, in November 2020, dropped 30% compared to the same month in 2019. In December, claims also fell 28% year-on-year.
The decline in claims reported is likely to continue this year as motorists are set to make fewer journeys than they would outside of the pandemic. The latest mileage data from drivers on pay-by-mile policies with By Miles shows the average mileage driven daily fell by 51% in January 2021 during the latest lockdown, compared to January last year.
In addition, with the increase in working from home, and a cut in commuting, drivers can keep a closer eye on their cars during the day which will deter thieves. Enquiry data showed the proportion of drivers keeping their vehicle at home during the day, rather than at an office or factory car park increased to 68% at the end of 2020 – up from 63% at the end of 2019.
Enquiry data also revealed that motorists expect to drive for an average of 6,970 miles in 2021 – 237 fewer miles than they expected to drive in 2020. The proportion of low mileage drivers has also increased slightly. Half of motorists (49%) plan to drive fewer than 6,000 miles in 2021 – up marginally from 46% in 2020.