Pandemic sees car insurance prices plunge

Pandemic sees car insurance prices plunge

 · 3 min read
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New data highlights that car insurance prices plunged across the board due to changes in driving habits because of the Covid-19 pandemic. With fewer people on the road, people driving much less, and fewer accidents, prices have fallen to their lowest in six years.

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Many drivers across the UK have struggled with rising car insurance premiums in recent years. However, there is now some respite! According to data compiled by, motorists are now seeing insurance prices fall by their fastest level in six years.

Changes to driving habits and the subsequent drop in accident numbers have seen car insurance premiums plummet. More people have been working from home or furloughed because of the pandemic, and trips to leisure facilities and non-essential retail haven't been possible. This has resulted in far fewer people on the roads, while those going out have been spending less time travelling. All of this has resulted in a significant drop in accident numbers and claims.

What the data shows

According to the data released by, average mileage has fallen by 43% during the pandemic, reflecting changes in driving habits and the effect of various lockdowns and restrictions. 

The cost of car insurance for men has fallen by 14% year-on-year, with the average cost dropping by £91. For women, the average drop in the cost of insurance is £82. Researchers tracked six million insurance quotes during the first quarter of 2021 to obtain the figures.

The average amount motorists will now pay for car insurance in the UK stands at £538. However, experts have pointed out that those who stay with the same insurance company rather than switching may find their insurance costs continue to rise rather than falling.

Cutting the cost of cover

For people aged 50 and over, car insurance costs already tend to be far lower than for younger age groups because statistically, they are less likely to have an accident. Those who have retired spend far less time out on the road because they no longer have to commute to and from work. Older people also tend to have more years of no claims discount built up, and many have an immaculate driving history. Naturally, lower insurance costs come as a relief for those in older age groups living on a pension.

Many people who do work are now doing so from home, and many companies are open to the idea of letting employees work from home for the foreseeable future. This has become the new norm in many cases, and it means that people will continue to spend less time on the road and behind the wheel. 

Those working from home or that have otherwise reduced how much they use their car should contact their insurance company to update details, including reductions to annual mileage. This can help to cut the cost of cover.

Drivers should also shop around for better deals from another insurance company rather than automatically renewing their current policy. This could also lead to considerable savings given the drop in average insurance costs.

Reno Charlton
Reno Charlton
Reno joined Age Group in 2020 and has nearly 20 years of writing experience. Although she specialises in writing about finance topics and covering finance news, Reno is also a published author and has written several children's books and short stories.
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