£264 Million Saved by Car Insurance Companies in Scotland Over 2020

£264,346,900

…is the estimated amount of savings on payouts realized by the car insurance companies in Scotland in 2020, with Covid-19 crisis impacting daily commutes

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An estimated 36.65% drop in car-related claims over 2020

2020 has been a year like no other for the people of Scotland. Indeed, with a national lockdown in spring and the tier-levels restriction measures still in place, many Scots were forced to stay home a great deal of time. As a consequence, a majority of daily commutes came to a halt, meaning fewer people on the roads, and a lower probability of accidents occurring. That’s confirmed by our estimates :

36.65%
drop in car-related claims payouts
 

…in 2020 in comparison with 2019

£ 264m
saved by car insurance companies

…due to low traffic on the Scottish roads all along 2020

£ 50.4 m
saved by car insurance companies

…only in the city of Glasgow

How much will car insurers save in 2020 in Scotland?

As a result of many Scottish citizens staying home and reducing their daily commutes, car insurance insurance claims are expected to decrease a lot in Scotland as for 2020:

  • On a national scale, the savings on car insurance payouts made by the insurance industry over 2020 in Scotland should amount to £264.3 million – corresponding to an overall 36.65% decrease in payouts in comparison with 2019
  • As the chart below shows, the City of Glasgow accounts for the highest expected decrease in car claims over 2020 (- 43,7% in claims over 2020). Then follow the cities of Edinburgh (- 42.5%) and Aberdeen (- 41%) – which tends to prove that the urban areas have seen a higher decrease in car claims than the rural ones.

Car insurance savings in Scotland per council area

When taking a look at the savings made by car insurance companies in the Scottish Council areas over 2020, it appears that car insurance claims have globally decreased, though in different extents following the areas:

  • After the 4 Scottish biggest cities, Falkirk (- 37.7%), Aberdeenshire (-36.4%) and North Lanarkshire (- 36.1 %) appear to be the council areas where claims decreased the most.
  • The highest savings registered within the Scottish council areas (excepting the 4 biggest cities) are to be found in North Lanarkshire (£16.3 millions saved in car insurance payouts between 2019 and 2020), Fife (£15.1 million) and South Lanarkshire (£13.8 million).
  • At the bottom of the ranking, the Western Isles, the Orkney Islands and the Shetland Islands are the council areas where car claims have decreased less – being also the less populated areas of Scotland.
Council areasClaims decrease rateCar insurance savings on payouts over 2020
North Lanarkshire36.1%£16,289,128
Fife30.7%£15,144,609
South Lanarkshire32.6%£13,794,862
Aberdeenshire36.4%£12,624 ,236
Highland32.8%£10,247,553
Renfrewshire35.4%£8,348,192
West Lothian34.5%£8,335,013
Falkirk37.7%£8,017,982
Perth and Kinross28.2%£5,659,019
Dumfries and Galloway26.8%£5,289,205
North Ayrshire28.8%£5,167,827
East Dunbartonshire35.7%£5,129,781
Angus28.6%£4,402,056
East Renfrewshire34.1%£4,304,635
East Ayrshire26.4%£4,266,538
East Lothian30.0%£4,209,667
Scottish Borders27.2%£4,158,790
West Dunbartonshire34.4%£4,066 907
South Ayrshire25.9%£3,866,581
Midlothian31.0%£3,755,818
Inverclyde35.1%£3,638,463
Stirling28.6%£3,578,473
Moray27.3%£3,458,906
Argyll and Bute24.3%£2,780,338
Clackmannanshire33.6%£2,290,785
Western Isles16.5%£586,890
Shetland Islands18.8%£573,296
Orkney Islands17.4%£512,140
Car insurance savings made in 2020 in the Scottish council areas over 2020 (HelloSafe estimates)
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Antoine Fruchard, insurance expert and CEO at Hello-Safe.co.uk

With most people stuck at home, their cars have inevitably stayed in the garage. When the tier-system rules will be over and people will start going out again, the number of cars on the road is likely to increase back at pre-Covid levels. However, it is likely that customers will question why they continued to pay such high insurance premiums whilst they weren’t able to drive. It will be interesting to see if all the insurance companies will make more refunds, or which other kind of discount they will offer. Competition between them may be increasing in the coming months, and that means customers should see a slight drop in car insurance premiums – which would be fair given the economic crisis which may catch Scotland in the post-Covid world”.

Our methodology

We based our study on public and private information sources, including claims samples that our insurance partners provided us confidentially. Please note that those numbers are still estimates, for the 2020 year is not over. Indeed, there remains uncertainty around the Covid pandemic and the restriction measures that are to be taken until the end of December, which may affect the numbers. For further information on our editorial guidelines please click here.

About Hello-Safe.co.uk

Hello-safe.co.uk 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. Safe is supported and financed by Blue, an Insuretech Venture Capital firm. 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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