2021: The latest car insurance price trends

It’s clear that since the pandemic started the driving habits of the world have changed – and it’s not just due to local lockdowns and rules. Some people are still afraid to go out in public because of the chance of catching Covid-19, or, worse yet, bringing the virus home to the family.

Most people no longer run to the store every time they want something. Instead, it is a weekly, or monthly, trip to get everything that they need. Some are even choosing to order everything they can online and have it delivered. This allows them to drive less, meaning less accidents are occurring.

Work routines have also changed drastically. Many employees have been able to work from home, and even now are continuing to do so. School remains online for many, and at least some extracurricular classes are too. What used to be rush hour has faded as an issue because the surge of workers to and from work has subsided. In addition, going on vacation has been put on hold because of lockdowns and borders being closed. Airlines are restricting passengers, and some destinations are requiring proof of vaccines and a current negative Covid-19 test. This has slowed the number of people traveling across the country, and outside of the country, too. Essentially the world no longer drives all the time. 

As things open, and the governments allow tourists again, more people will be out driving on the roads, but experts still think many will choose to stay home, rather than be out in the world where they can come into contact with the virus, or one of its mutations.

The trend for last year was obvious because of the downward occurrences of accidents, due to less drivers being on the road. In Australia, car insurance in NSW either went down, or consumers were given discounts. The discounts were up to 50% for some drivers, depending upon their agents and the companies that are attached to them.

Car insurance holders across the world believe that the premium rates should come down. Mozo has found, through various studies, that 67% of drivers feel that prices should be decreased. That is every 3 out of 5 people that are legal to drive. This is especially true when one checks through last year’s profit reports for most insurance companies. Even with the discounts and lower rates, the insurance companies made huge profits because of the decrease in accidents.

Experts are mostly divided when it comes to how rates should be decreased. Some say that it should be done by lowering the premiums charged; others say that it should be discounted for current policyholders. Either way, they almost all agree that prices will come down, even if it is only a slight change. The public is demanding it, and since the consumers are the ones buying the coverage, any company that chooses to listen will be extremely successful in the upcoming years.

The editorial unit