Car Insurance Premiums Could Increase After Coronavirus

10 million drivers could see their car insurance costs rise.

author image-cai
By Cai Bradley
Updated on Tuesday 16 June 2020

Business man commuting to work in his car

Compare the Market – one of the UK’s leading comparison websites – has predicted that the cost of car insurance could increase overall as a result of the Coronavirus pandemic, but why?

Car insurance premiums are calculated based on a variety of factors, including the type of vehicle you drive, your age, the type of cover you choose, how often you drive (mileage) and ultimately, your risk of having a collision.

The more vehicles that are on the road, the higher the risk of a collision, which could lead to an overall increase in the cost of car insurance premiums for everyone in the UK as a result.

It is therefore concerning that the new Compare the Market study found that there will be a significant increase in the number of people driving to work, rather than using public transport, once the Coronavirus crisis has come to an end and normal life resumes.

More people will drive to work after the Covid-19 pandemic

Research by Compare the Market found that far more people will be driving to work once the pandemic is over, with 61% of drivers in the UK expecting to commute by car when they return to their jobs – up from 34% pre-lockdown.

That equates to an additional 10.5 million vehicles being used for daily commuting, with people planning on avoiding public transport as the UK eases its way out of lockdown – as they are being advised to do by the Government.

The different car insurance classes include:

  • Social, Domestic and Pleasure (SDP)

  • Social, Domestic, Pleasure and Commuting (SDP+C)

  • Personal Business use (SDPC+business use)

The extra 10.5 million people driving to work post-lockdown will now need to ensure that their car insurance covers commuting, which means that many will need ‘SDP+C’ or ‘SDPC and business use’ in some cases.

Many drivers who bought car insurance before the Coronavirus outbreak will have opted for an SDP policy and will therefore need to upgrade their cover to include commuting as well, which is likely to lead to an increase in premiums.

An example used by Your Money demonstrated how a man in his mid-30s driving a Skoda Octavia would see an increase of 6% if he changed his car insurance from an SDP policy to an SDP+C one.

You might like: Why Has My Car Insurance Gone Up?

What has been said?

Compare the Market’s head of motor insurance, Dan Hutson, said that “the Government is encouraging the UK to get back out to work and society and, crucially, to avoid public transport where possible”.

He continued that, while vehicles are crucial for protecting us from the spread of Coronavirus, “being asked to drive more could have a significant hit on finances”.

“Motor premiums, which have fallen lately, could be about to jump once more. More drivers will need to adapt their policies to include cover for commuting and insurers may increase their prices in anticipations of more cars, and more crashes, on the road”.

Mr Hutson urged drivers to shop around to find the most affordable and competitive policy on the market, which you can do today by getting a quote from using the button below:

Motor insurance advice at Compare UK Quotes

In short... more drivers will take to the road in order to avoid public transport following the Coronavirus lockdown, the risk of car accidents therefore increases, which, in turn, leads to higher car insurance premiums.

Here at Compare UK Quotes, we consistently scan the market to find ways of helping you get the cheapest car insurance available to suit your needs.

For more information, tips and guides, browse our insurance resources or read our related guides:

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