In the last three months of 2020, ca insurance premiums began to rise even though people were driving less and having fewer accidents due to the coronavirus pandemic.

MoneySupermarket.com showed that the average fully comprehensive car insurance premium cost £490 at the end of 2020 versus £473 in September.

This is despite data from HelloSafe showing that insurers saved £4.4b overall as car claims dropped by 49.9% in 2020 compared to 2019.

So, with the third lockdown heading our way it’s important that you’re not spending when you don’t need to be.

You should be aiming to claim back as much cash as possible.

How have you saved money this year? Tell us in the comments...

Thousands of drivers have remained off the roads during lockdown


HelloSafe chief executive Antoine Fruchard said: "With that second pandemic wave that is shaking the UK, road traffic has gone down again, and again the insurance companies save money on claims.

"With fast-deteriorating economic conditions, Brits are likely to question their 2021 premiums."

A study by Direct Line last month found that 55% of drivers are driving fewer miles than before lockdown.

And, insurance firm By Miles found that the pandemic had cut the miles workers are commuting in a week by 55million.

However, despite a reminder by the Financial Conduct Authority to insurance companies that the value of their services should be reviewed during the pandemic only a few providers have initiated refund services.

You could save cash if you're driving fewer miles

James Blackham, co-founder of By Miles, said: “During the first national lockdown driving levels dropped suddenly and dramatically, and so insurance claims followed suit. This saved car insurance companies over £1billion in claims payouts.

“Despite this, motorists have continued to pay the same insurance premiums, even though they’ve clearly not been using their vehicles as much as when they first took out their policies."

But, that won’t necessarily stop you from claiming back money or reducing how much you pay.

Firstly, you need to check if your insurer will reduce or refund some of your policy due to driving less.

Admiral credited people £25 back, per policy during lockdown one.

That means £110m was returned to drivers.

So, you should definitely call and ask your insurance provider if they will award you some of your money back.

And, Direct Line has a scheme to let people reclaim 20% of their cash back if they drive fewer miles.

Plus, Esure is offering refunds to those whose mileage is lower than when they originally took their policy out

Or, they will suspend insurance on unused vehicles.

Finally, Aviva has said that they will let customers review their annual mileage if they are driving “significantly less” and this may reduce your premiums.

If you are not going to drive or insure your car you need to register it as being off road to remain legal.

Confused.com car insurance expert Alex Kindred said: “The number of people who applied for a Statutory Off Road Notice (SORN) more than doubled at the start of the lockdown in March."

He added: “For any drivers who have decided to do the same for the second lockdown, it’s important that we’re taking the right steps to avoid receiving a fine when we return to the roads."