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Car insurance customers have failed to see significant reductions in their premiums with some even revealing that prices have risen in a shocking discovery.Analysis from Tempcover has revealed that one in eight road users have seen premiums slightly increased in recent months.
Forty percent of road users revealed they were still paying the same price as before lockdown stated despite using their car a lot less.
Savings were made by some drivers with Tempcover revealing that many have saved an average of £500 on their cover.
But of those that saved money, eight percent stunningly revealed that they felt the reduction in cost was proportionate to the reduction in mileage.
It means that drivers across the country have been caught out by their fixed-term car insurance agreements which did not factor in for a limited number of miles at the start of the year.
Many drivers have now turned to new services such as Tempcover and By Miles which offer flexible short term policies.
This enables motorists to react to current market positions a little better and ensure they are not stuck into a long term agreement with no level of personal control.
Tempcover CEO Alan Inskip said larger firms can “hamper the ability” for drivers to adjust their policies to suit changes,
He said: “The big insurers in the UK do as much as they can to ensure their customers feel valued, however they face a unique set of challenges in the current climate.
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“A notable challenge is that large broker and insurer systems can hamper the ability to quickly adjust to major environmental and market changes.
“Whereas our agility allows us to step in and help them and their customers.”
Analysis from ByMiles found that motorists could save £150 a year through securing a pay-as-you-go insurance deal rather than a fixed policy.
By Miles said demand for their flexible offerings has shot up so far in 2020 with a 65 percent increase.
Phil Ost, car insurance expert at Zurich said the pandemic has seen a “real shift” in drivers needs and behaviours and called upon the insurance sector to “adapt”.
He revealed that motorists should “consider on-demand cover” as the new scheme could save drivers a “significant amount” of money.
A recent analysis from insurance experts Safe revealed that car insurance firms pocketed £1.2billion between 23 March and 31 May.
This was due to a reduced number of claims while customers premiums remained mostly at the same prices.
Average claims were down 69 percent over the period with firms able to save millions in extra revenue generated from customers.
The research revealed that firms should have paid up to £1.8billion in claims but instead spent just £569million.
One firm expects to save as much as half the funds it expected to pay out in personal injury claims.
This is executed to be because of a dramatic reduction in the number of car crashes as more people stayed at home.
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