• 21.5 million people (55 per cent) say they are now driving fewer miles than they were before lockdown began in March
• 40 per cent say they drive less because they can’t visit friends, they don’t like going out as much now (30 per cent) and because they don’t have to go into work now (22 per cent)
• On average, those in Leeds were found the most accurate at estimating the distance between them and other major cities being as close as 0.1 per cent, while those in Norwich fared worse at 27 per cent
• Direct Line is providing customers with a refund on the miles they don’t drive as part of its Mileage MoneyBack initiative

A new study¹ by Direct Line Car Insurance reveals that more than half (55 per cent) of drivers are now driving fewer miles than before the initial lockdown period began in March - the equivalent of 21.5 million people.  Furthermore, 34 per cent (13.2 million) say they are now driving significantly fewer miles than they were before the first lockdown.

Many of the reasons why people are driving less are based on the impact of Covid-19. Of those who said their driving habits have changed, 40 per cent said they are driving  less  because they currently can’t visit friends and family, while 30 per cent said they don’t like going out as much now and 22 per cent said they drive less because they don’t have to go into work now.

During October, at the height of the tiered lockdown system, motorists stated they were driving 198 miles on average. When comparing this to the average estimated mileage listed on insurance policy renewals – 8,000 miles per year or 667 miles per month – this represents 70 per cent less than originally estimated. 

With the impact of coronavirus leading to local and national lockdown measures being introduced, drivers may need to re-estimate their annual mileage based on the distance they are actually travelling. As part of Direct Line’s Mileage MoneyBack initiative, the insurer is providing both new and existing customers (who chose to opt in) with a refund on the miles they don’t drive. Customers will receive two per cent of their premium back for every 1,000 miles they don’t drive, up to a maximum of 20 per cent of their premium returned or 10,000 miles.²

As part of the nationwide study into understanding mileage, motorists were asked to work out the distance between their nearest major city and other major cities across the UK in order to understand how accurately people can judge mileage. On average, motorists estimated the distance between them and their closest city to be 142 miles less than the actual distance.

The most accurate drivers were from Leeds, Liverpool, and Nottingham. On average, those in Leeds only underestimated the distance between them and other major cities by 0.1 per cent, while those in Liverpool underestimated by just two per cent and Nottingham underestimated by three per cent.

On the other end of the scale, people in Norwich, London and Manchester seemed to be the worst at estimating distance and mileage. Norwich underestimated the distance between them and major cities by 27 per cent. Similarly, London and Manchester were both on average 14 per cent out.

Table one: Estimated average mileage under / over the actual distance between major cities 

Direct Line Car Insurance 2020

Greater distances were some of the hardest for people to judge. As an example, people in Norwich estimated the distance between them and Plymouth to be 45 per cent less than the actual distance at 195 miles compared to the actual distance of 358 miles. Meanwhile, people in Cardiff estimated the distance between them and London to be 26 per cent higher than in reality at 190 miles when in actual fact it was 151 miles.

Although it might be expected that a large proportion of people in various cities estimated greater distances incorrectly, there were also examples of where smaller distances were misjudged. People in Birmingham estimated the distance between them and Nottingham on average 44 per cent higher than the actual distance. They estimated 73.5 miles when the actual distance was only 51 miles. Similarly, those in Manchester estimated the distance between them and Sheffield to be 99 per cent higher than it actually was at 75.7 miles compared to the actual distance of 38 miles.

Table two: Top five worst estimated average mileages between major cities  

Source: Direct Line Car Insurance 2020

People in Leeds managed to estimate the distance to the capital most accurately, with estimates being out by less than one per cent. This may be unsurprising, given that this is quite a common trip people make, but those living in Norwich underestimated the same distance by 26 per cent.

Lorraine Price, Head of motor insurance at Direct Line commented: “It’s clear to see that people find it incredibly hard to judge distance, and therefore mileage, without the help of technology. With the impact of the coronavirus, across the UK, people will obviously be driving much less than originally anticipated when they renewed their insurance. It is therefore important that drivers take this time to gauge their mileage as accurately as possible.

“At Direct Line, customers who opt-in, can claim a refund on the miles that they don’t drive as part of our Mileage MoneyBack initiative. We recognise that estimating yearly mileage can be difficult for customers and that it may be more difficult to understand how much you will drive in the future especially given the current crisis. That’s why we want to make sure that if customers drive less, they also pay a little less.”

For more information on Direct Line’s Mileage MoneyBack initiative please visit: www.directline.com/mileage-moneyback

- ENDS -

Notes to Editors

 

1. Research commissioned with Opinium between 30^th and 2^nd November 2020 among 2,000 UK adults.
2. Customers will get 2% of their premium back for every 1,000 miles they don’t drive and up to a maximum of 20% of their premium returned or 10,000 miles. That means if a customer pays £400 a year and drives 3000 miles less at the end of their policy term, they will receive a £24 refund.

 

For further information please contact:

Simon Henrick 
Direct Line Group

Tel: 01651 831 668
Email: [email protected]

Samantha Stewart

Citigate Dewe Rogerson

[email protected]

0207 025 6497

 

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel and pet insurance cover direct to customers by phone or on-line.

Direct Line general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line and UK Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line products or get a quote by calling 0345 246 3761 or visiting www.directline.com/car-cover