When the coronavirus lockdown was first implemented, plaudits came in for the fact that UK drivers appeared to be staying off the roads. Accidents fell, heaping pressure on the insurance industry to reduce premiums as companies saw fewer claims. However, have we really kept the brakes on as lockdown has continued?
SmartDriverClub Insurance has offered some insight on the matter – and it suggests that our interest in the restrictions is waning.
The company, which utilises telematics capabilities to monitor driver behaviour, noted that when comparing data from the week commencing March 23 to the week commencing April 27, Britain’s journeys have shot up.
“When the lockdown was first announced, we saw an immediate 82% drop in the average number of daily customer journeys,” said Ross Hallifax, director at SmartDriverClub Insurance. “The government has always allowed necessary trips for food, medicine and when people can’t work from home, however since April 21 we’ve seen a steady increase with last week showing a real spike in the number of trips.”
According to the managing director of Tracker, Mark Rose, the figures suggest that insurers should be looking to protect their loss ratios.
“The provision of telematics and usage-based insurance (UBI) enables insurers to remain competitive, increasing their book of business while building customer loyalty,” he insisted.
