Car insurance costs fall at record rate thanks to lockdown

Car insurance costs have seen their biggest ever quarterly fall as the effects of last year’s national lockdown are felt across the industry.

Between January and the end of March, the average premium paid fell by £32 to £436. That was a seven per cent drop on the last quarter of 2020 and represents the sharpest fall since the Association of British Insurers (ABI) began collecting data in 2012.

The figures from the ABI also show that premiums are now at their lowest level for almost five years.