Motor Trade Insurance

Cost Of Car Insurance Drops In Q1 2021

April 16, 2021 by mti

Motor traders will be interested to read that the cost of insuring a car has fallen in the first quarter of 2021 according to that is a very well-known price comparison website.

Apparently, figures published by reveal that the average price paid by motorists for fully comprehensive car insurance fell from around £485 per annum in the first quarter of 2020 to around £417 per annum in the first quarter of 2021. That is a reduction of £68 per annum that equates to a fall of 14% per annum.

One of the reasons for this is no doubt due to the impact that the coronavirus pandemic has had on policyholders using their motor vehicles here in the UK. There will no doubt have been many motorists who are travelling fewer miles in their motor vehicles due to not having to travel to their place of work as they are working from home. People will also be making fewer trips in their cars to go shopping. In addition, people have not been able to go on holiday.

Because fewer trips have been made in cars, there will have been a drop in the number of road traffic accidents and possibly a reduction in the number of vehicles being stolen. This will have meant that car insurance companies will have received a lot less car insurance claims leading to them having to pay out lower sums than normal to meet those insurance claims. If they are not having to pay out as much to meet those claims an option open to them is to reimburse policyholders by, for instance, reducing how much they charge their customers over the next twelve months.

Bearing in mind that motor traders will no doubt have cover to drive not only their own vehicles but also those that they are considering buying from a customer or have done so, the above may have an impact on their motor trade insurance policies. In this respect, motor traders may like to shop around when it comes to getting near the anniversary of their existing cover coming up for renewal or if they are setting up in business as a motor trader for the first time to compare premiums. We will be happy to help you obtain a competitive quotation without any obligation from the many insurers that we have access to.    

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