(Reuters) – The cost of a comprehensive car insurance policy in Britain fell 12% in the second quarter to its lowest level since early 2016 due to COVID-19 lockdowns, although it might rebound to pre-pandemic levels as restrictions ease, a survey showed on Wednesday.
UK motorists now have to pay 522 pounds ($709.45) on average, according to the latest index from price comparison site Confused.com in association with insurance broker Willis Towers Watson.
The fall was the second-biggest annual drop since 2014, and car insurance premiums have now fallen for three consecutive quarters. However, they could start rising as most restrictions on movement have been lifted in Britain.
Even without the pandemic, regulatory reforms across the sector are creating pricing pressures, said Graham Wright, the UK lead of P&C personal lines pricing at Willis Towers Watson.
Britain’s financial regulator in May said it would move to protect consumers from so-called loyalty penalties in motor and home insurance, potentially saving an estimated 4.2 billion pounds ($5.95 billion) over 10 years.