British motor insurers should repay all or some of their premiums to customers because of a steep drop in car use and claims due to the coronavirus lockdown, according to a group of lawmakers.
The lawmakers said car insurers had reported an almost 50% drop in claims during the lockdown and the British government had said driving was down by 75%, with insurers calculated to make one billion pounds profit from the drop in claims.
“We do not need to restate all of the financial challenges faced by families during these desperately difficult times,” the cross-party group of 27 members of parliament – mainly from opposition parties – said in a letter to Britain’s finance minister Rishi Sunak.
“The cost of cover has become problematic for so many and the financial difficulties presented by the pandemic make this even more of a challenge. Previous Government estimates indicated that the whiplash reforms would take £35* off premiums. The delay will push this saving out until April 2021 at a time when people can afford it least.
“For those struggling to keep up with the cost of their insurance, there are a number of measures that could be taken, such as changing your policy from a commuter to social use or declaring your car off road if appropriate. It is also important to ensure you are on the most competitive policy possible. If you are coming up to renewal, it is worth shopping around to see if you can find a better deal – drivers stand to save £121** on average by switching.”
Vehicle theft in England and Wales has continued to rise dramatically, according to figures from a Freedom of Information request by AX.
While the Covid-19 lockdown may yet reduce vehicle thefts in 2020, responses obtained from police forces across England and Wales suggest theft of motor vehicles rose by a significant 21% between 2016 and 2019, following analysis by the provider of intelligent vehicle protection and management technologies.
Nearly half of people have witnessed an increase in drivers breaking the speed limit during the government lockdown, according to research carried out by the RAC.
Forty-four percent of UK adults say they have seen more drivers speeding now than they did before the Government introduced the coronavirus lockdown.