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Car insurance cost hits four-year low as vehicle use stalls due to Covid

Other factors that contributed to falling premiums included the increasingly competitive nature of the motor insurance market, and greater eagerness among drivers to shop around for the best deal.  Although customers are paying less, car insurers have continued to provide extra help to the UK s 27million drivers during these difficult times. They have extended their pledge that, if you must drive to and from your workplace because of the impact of Covid-19, your insurance policy will not be affected.  This promise has been extended repeatedly since the beginning of the pandemic and is currently valid until 30 April. In addition, the insurance cover of people who are using their own cars for voluntary purposes, such as transporting medicines or groceries, will not be affected until the same date.  

Car insurance UK: Premium prices have reached new four year low in welcome news

Trending Dan Hutson, Head of Motor Insurance at Compare the Market said the low prices would be “welcome news” for many households. However, he urged drivers to continue to “shop around” for the best deal at the end of their existing policy term. He said: “With fewer cars on the road last year due to lockdowns, working from home and social distancing, premiums have fallen to their lowest level in years. “This is welcome news for most households as budgets continue to be stretched. READ MORE “However, these savings are usually only available to drivers who shop around for the best deal at the end of their policy, with our research showing the difference between the average premium and the cheapest premium to be £104.”

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