Commuters spared increase in car insurance premiums

COMMUTERS who are opting to drive to work for the first time to avoid public transport will not face a hike in their insurance premiums, the industry trade body has confirmed.

The Association of British Insurers said a person who was unwilling or unable to use public transport because of the Covid-19 outbreak did not need to upgrade their insurance in order to travel to work by car.

The Government has stated that people should avoid using public transport where possible, leading many workers to commute by car for the first time.

Many drivers will have “social” car insurance, the most basic type of motor cover available. This policy only insures against driving for leisure and does not include travel to work. People that commute by car typically have to upgrade their policy to social and commuting or business cover.

The ABI said: “If you have to drive to your workplace because of the impact of Covid-19, your insurance policy will still be valid. You do not need to contact your insurer to update your documents or extend your cover.”

A spokesman said people with social driving cover are fully insured if they use their car to commute, although this may change as the lockdown is eased and more drivers are on the road.

He said those renewing their policy should make their insurer aware of their change of circumstances, whether they are commuting by car in the short term or will continue to do so after the lockdown lifts.

Data from Comparethemarket.com, a price comparison website, found that the number of people commuting to work by car could double as a result of

‘If you have to drive to your workplace because of Covid-19, your insurance policy will still be valid’

coronavirus. Car insurers LV and Admiral have offered partial refunds to their car insurance customers who were unable to make full use of their vehicles during lockdown.

In April, more than 25 cross-party MPS wrote to the Chancellor urging the Government to reduce motor premiums due to the decrease in car usage.

They added that car insurers had reported an almost 50 per cent drop in claims during lockdown and that insurers would make a £1billion profit from all the motorists who cannot currently drive.