£4.4 Billion Saved by Car Insurance Companies in 2020 in The UK Because Of Covid-19

£4,392,985,600

…is the estimated amount of savings on payouts realized by the car insurance companies in the UK in 2020, as most drivers had to stay home due to Covid-related restriction measures in the country.


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CategoriesNumbers
Estimated car-related claims decline across the UK in 202049.8%
Estimated savings made by car insurers in 2020£4,392,985,600
Estimated car insurance savings in the UK in 2020 (HelloSafe estimates)

41.2% drop in car accidents across the UK in 2020

2020 has been a year like no other for the British citizens. Two national lockdowns in England, multiple local lockdowns, tier-levels restrictions systems and a whole range of other restrictions measures have considerably affected the people’s daily routine. As we had observed on a first study published in June focused on the first national lockdown period, daily commutes have significantly decreased across the country, a fact that is confirmed by the numbers gathered by HelloSafe:

41.2%
drop in car accidents
 

…during the lockdown compared to 2018

25.5%
decrease in deaths by
accident

…due to low traffic on the British roads

53.7%
decrease in repairs

…sent by motor insurers to UK garages, in comparison with 2018

Car insurance savings per region / country

Overall, insurance companies could save up to £4.4 billion in 2020 thanks to the change in driving habits caused by the lockdown measures. When looking at the regions chart above, we can observe that:

  • Greater London accounts for the highest savings, with an 58.9% overall drop in the number of car-related claims. That corresponds to a £693.3 million reduction in the sums to be paid out by insurers to their policyholders.
  • Just like during the first national spring lockdown (March – May 2020), we observe that the less densely populated areas are those where car claims decrease the less: Scotland (-36.7 %), North East England (- 41%) and Wales (- 45.3%).

A lookout on the 20 biggest cities of the UK

The decrease in car-related claims has been bigger in the greatest UK urban areas. It is therefore no surprise to see that London ranks first in the cities were car insurance savings have been the most important:

Cities*Region / CountryDecrease rateSavings on payouts
LondonLondon58,9 %£696 ,279 ,569
BirminghamWest Midlands57,4%£89, 121, 993
LiverpoolNorth West55,6%£43, 343, 007
ManchesterNorth West56,1%£41, 856 ,199
BristolSouth West54,2%£41 ,716 ,685
SheffieldYorkshire Humber51,2%£37 ,511, 409
GlasgowScotland43,7%£35, 994, 401
LeedsYorkshire Humber48,9%£33 ,127 ,253
LeicesterEast Midlands45,1%£28 ,585 ,045
EdinburghScotland42,5%£27 ,914, 313
CoventryWest Midlands55,1%£27 ,371 ,140
BradfordYorkshire Humber50,5%£24 ,537 ,348
CardiffWales47,9%£22, 597, 953
NottinghamEast Midlands53,3%£22 ,367 ,068
BelfastNorthern Ireland48,5%£21 ,469 ,808
Stoke-on-TrentWest Midlands55,1%£20, 544, 001
SouthamptonSouth East55,7%£20 ,181, 524
DerbyEast Midlands52,3%£18, 576 ,722
Kingston upon HullYorkshire Humber46,7%£18, 142 ,358
Newcastle upon TyneNorth East44,0%£16 ,689 ,068
Car insurance savings on payouts in the 20 biggest cities of the UK (HelloSafe estimates)

*Those numbers do not take into account the urban or metropolitan area, but only the city itself

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Antoine Fruchard, insurance expert and CEO at Hello-Safe.co.uk

After the first national lockdown was eased, we thought that life would go back to normal. However, with that second pandemic wave that is shaking the UK, road traffic has gone down again, and again the insurance companies save money on claims. With fast-deteriorating economic conditions, Brits are likely to question their 2021 premiums. A discount may be expected by them, to compensation a 2020 year during which it has often been impossible to get our with the car. Car insurance companies will probably have to make an effort, which could take the shape of a one-shot refund or of a premium discount. In this very uncertain future, the insurance industry will be watched”.

Our methodology

We based our study on public information provided by reliable data-providers, as well as on 18 European insurance partners who provided us anonymously with claims for the 2020 year. More than 500,000 policyholders from all the UK regions have been taken into account. For further information on our editorial guidelines please click here.

About HelloSafe

HelloSafe is a comparison platform which is shaking up the insurance market – giving you access to the best UK insurance deals in less than 30 seconds. HelloSafe is supported and financed by Blue, an Insuretech Venture Capital firm. Blue already owns two leaders in the French insurance comparison market, Réassurez-moi and Coover. These platforms help more than 10 million people with their insurance every year. We have developed a unique comparison technology that gives access to cover details and quotes without customers having to give their phone number or email address. This engine is the result of four years of hard work.

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Alexandre Desoutter
Communications & PR officer