Individuals intending to drive to work will need to ensure that their motor insurance policy covers not only social travel but also commuting. Motorists intending to drive to work when they did not do so before the pandemic will need to swap their insurance to a Social, Domestic, Pleasure and Commuting policy (SDP+C). However, these policies can be more expensive. For example, a 36-year-old man living in West London, who has driven for 19 years and has a Skoda Octavia will pay around £330 for an SDP policy compared to around £350 for an SDP+C policy – a 6% increase.
The proportion of people who will start driving to work in light of the pandemic varies across the country, but is particularly high in Northern Ireland, Wales and the West Midlands. In London, almost a third (32%) expect they will now drive to work, compared to the fifth (20%) who commuted by car before the pandemic. However, 45% of Londoners confirm they still plan to use public transport.
comparethemarket.compredicts that the cost of motor insurance overall could be set to increase. Nearly a fifth (17%) of UK households think that they will use their car more than they did prior to the pandemic. Premiums are underwritten by insurers based on a number of factors, including the likelihood of crashes. With more cars on the road, the risk of collisions increases, which could cause motor insurance premiums to rise accordingly.
The findings come at a time when household finances are already stretched. According to comparethemarket.com’sHousehold Financial Confidence Tracker, nearly a fifth (17%) of UK households are worried about being able to pay bills and keep on top of household finances in the coming months given the ongoing economic hit due to the pandemic. This figure rises to nearly a quarter (24%) amongst families with children at home who are also far more reliant on cars, with 22% likely to use their car more than they did pre-lockdown compared to 15% of those without children at home.
Dan Hutson, head of motor insurance at comparethemarket.com,said: “The Government is encouraging the UK to get back out to work and to society and, crucially, to avoid public transport where possible. Cars are so important for keeping us protected from the virus but, at a time when households are already financially stretched, being asked to drive more could have a significant hit on finances.
“Motor premiums, which have fallen recently, 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 anticipation of more cars, and more crashes, on the road. In addition, higher car usage will also result in a higher fuel bill. At a time when money is already tight, it’s important that motorists look to save money where they can and shopping around for the most competitive policy remains the best way to do so.”
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