It will probably not come as too much of a surprise to hear that the number of motor insurance claims received by insurance companies here in the UK in the second quarter of 2020 dropped by a sizeable amount. No doubt a major factor for this happening was going to be due to the pandemic.
According to figures published by the Association of British Insurers (ABI), the number of new claims received by motor insurance companies amounted to 324,000 compared to 678,000 that were received in the first quarter of 2020. That is a huge drop of 354,000.
Some motorists may be unhappy that although there has been a big reduction in motor insurance claims there are not many insurance companies as far as we are aware that have offered any financial incentive to their policyholders. After all, presumably motor insurance companies have had to pay out less in total to meet claims by policyholders so it would be nice if more offered some form of refund to their customers either by way of a lump sum or a reduction in premiums.
The amount paid out by insurance companies to meet motor insurance claims in the second quarter of 2020 totalled £2.1 billion with this being a fall of 5% when compared with the first quarter. It should be noted that this figure includes a number of claims received from previous quarters.
Apparently, the amount of each claim that was paid out averaged £4,600 in the second quarter of 2020 with this being a rise of 27% when compared with the first quarter of 2020.
What do you do when you receive a renewal notice from your motor insurance provider? There are no doubt a significant number of people who do absolutely nothing and end up being charged more for their cover. At very least, you ought to consider getting on the phone to your existing insurer and see if they will reduce the amount of the increase they are proposing to make. However, you may also wish to get competitive quotes from other providers to see if you can save some money with another motor insurer.