The average fully comprehensive policy costs £460 a year.

New figures show car insurance premiums remain at a four-year low as the coronavirus pandemic continues to rumble on. Data from the Association of British Insurers (ABI) showed drivers were paying an average of £460 for fully comprehensive car insurance in the third quarter of 2020.

Although that figure is unchanged from the previous quarter, it’s £8 lower than in the same quarter last year. The number is also the lowest seen in four years, with reduced traffic levels and a resultant reduction in crashes helping keep premiums down.

The data comes from the ABI’s imaginatively named Motor Insurance Premium Tracker, which collects information on how much consumers are spending on car insurance. It’s the only insurance premium data based on the amount consumers pay for insurance, rather than how much they are quoted.

The ABI’s manager for general insurance, Laura Hughes, said although the coronavirus pandemic has seen insurance prices tumble, increasing repair bills and delayed changes to the way personal injury claims are calculated meant consumers still need to shop around to get a good deal.

“While lockdown restrictions eased and road traffic rose during the period, our latest premium tracker shows that motorists continued to benefit from fewer road crashes, and a very competitive market. However, continued cost pressures, including rising repair bills and the delay in introducing personal injury reforms, mean that motorists should continue to shop around to ensure they’re getting the best deal for their needs.”

Man researching car insurance coverage on computer

This positive news for motorists follows the announcement that the ABI’s coronavirus support scheme has been extended until the end of the year. With a second lockdown arriving on November 5, the ABI’s members are extending their cover so those who need to drive to work because of the pandemic can do so without informing their insurer. NHS volunteer responders are also permitted to carry out their activities without needing to extend their cover.

However, the ABI says these pledges are temporary, and a review will take place before the measures expire on December 31. The organisation has advised customers renewing their policies and making more permanent changes to their driving patterns to discuss changes with their insurer.

Car insurance claim forms

As Prime Minister Boris Johnson announced on October 31, England will return to lockdown measures from November 5. This second lockdown, which is only expected to be in place until the beginning of December, will be less strict than the lockdown seen in the spring, with schools, colleges and universities staying open.