Car insurance costs fall during pandemic

Car insurance prices in the North Est have decreased by up to five per cent because of the coronavirus pandemic, according to new figures.

Fewer accident claims because of reduced traffic volumes have helped to bring down insurance costs in the region to an average of £702, says consumer research organisation Consumer Intelligence.

Nationally, the pandemic and its effects on road use and accidents, has seen motor insurance prices decrease by 2.5% over the last six months and the average annual premium now sits at £816 - 1.1% lower than a year earlier as prices had been rising before the coronavirus crisis struck.

The analysis found premiums are down by 1.9% compared with a year ago for the under-25s - the biggest annual decline of any age group.

In comparison, the over50s typically pay £370 while those aged 25 to 49 hand over £628 for an annual policy.

Harriet Devonald, product manager at Consumer Intelligence said: "We are currently seeing insurance premiums decreasing in all age groups.

"Even with telematics-based policies which work hard to keep pricing affordable for the youngest drivers, there is still a huge difference when the prices are compared to the over-50 and 25 to 49-yearold sectors."

The largest falls have been the North East, East Midlands (3.9%) and the West Midlands (3.8%).

London (£1,499) remains the costliest place for car insurance, with Scotland (£513) the cheapest UK region.