Car Insurance: 77 Million Pounds Saved by Insurers in Scotland During Covid-19 Lockdown

£ 77073563

…is the estimated amount of savings on payouts realized by car insurance companies in Scotland during Covid-19 lockdown, as drivers stayed home between the 23rd of March and the 31st of May.

Claims drop during lockdown


Cost of claims in a “normal” 77-days period


Car insurers’ savings during lockdown


Scotland big numbers

drop in car claims

…across Scotland, the lowest rank among the UK regions.

million pounds saved

…by car insurers only in the Glasgow metropolitan area.

average decrease

…of annual insurance car premiums, (8% average reduction).

51% drop in car-related claims

With the UK locked down from the 23rd of March*, most Scots were forced to stay at home. As a consequence, daily commutes came to a halt, meaning fewer people on the roads, and a lower probability of accidents occurring. However, as shown by the following graphics, with a 51% drop, Scotland has been the region in the United Kingdom with the lowest decrease in car-related claims.

*In this study, the English lockdown dates has been taken into account for statistical comparison purposes – from the 23rd of March to the 31st of May (which represents 77 days).

Overall, insurance companies in Scotland could have actually saved up to £77,6 millions thanks to the change in driving habits caused by lockdown measures.

  • The Scottish metropolitan area accounting for the highest savings is Glasgow, with a £23,6 million reduction in payouts by the insurers. The Edinburgh metropolitan area ranks number 2, with almost £12,9 million saved by the insurers.
  • Usually, motor insurers put aside ⅔ of premiums to cover road accidents. However, the reduction in the number of accidents has cut that  proportion significantly. One big car insurance player expects it will save as much as half the funds it expected to have to pay out for personal injury claims in 2020.

Will customers receive their money back?

With the savings made while Scotland was locked down, the big insurance companies decided to reduce the premiums for their customers. That is why it has been observed in the country an average £44 annual price reduction on car premiums per customer. Indeed, the average annual premium was £552 as for March 2020, and has gone down to £507.6 at the beginning of June – which represents an 8% decrease in prices for the Scottish drivers.

Admiral was the first car insurance company in the UK to announce a £180 million spending including a fixed £25 refund to each of its car and van insurance customers – which could represent a £15,6 millions refunds sum for Scottish clients. Others are planning on refunding only customers that were affected by the pandemic, such as the unemployed or people placed on a government furlough scheme by their employer. 


Antoine Fruchard, insurance expert and CEO at

It is interesting to observe that Scotland is the region where car claims have plummeted less in the UK during the lockdown. Nonetheless, we estimate that car insurers have saved £77 millions during this period. Now that the lockdown is over, the number of cars on the road could soon be back at pre-Covid levels. However, it is likely that customers will question why they continued to pay such high insurance premiums while they weren’t able to drive. While some insurance companies have already made refunds, it has been observed a £44 average decrease in car premiums in Scotland between March and June, which proves that the competition is hard between the major motor insurers”.

Our methodology

We based our study on public information provided by reliable data-providers – such as the ABI, Which, Willis Tower Watson and Money Wise – and 18 European insurance partners who provided us anonymously with claims for the period from the 23rd of March to the 31st May. 545,560 policy holders from all the UK regions have been taken into account. For further information on our editorial guidelines please click here.


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