Drivers planning to use their cars on New Year's Eve are being issued a stark warning, as data reveals a dramatic spike in insurance claims on the final night of the year.
A Surge in Claims on the Festive Night
Analysis of claims data shows that car insurance claims typically jump by a staggering 40 per cent on New Year's Eve. This alarming figure is based on comparing claims made on December 31st with the daily average for the same period between 2020 and 2024.
James Armstrong, CEO of Veygo by Admiral, highlighted the risks. "Despite New Year's Eve being quieter in comparison to the start of the festive season, it's imperative to still pay attention," he cautioned. Armstrong warned that the perception of emptier roads can lead to dangerous behaviour. "Many drivers may think that because there is less traffic, they can take more risks, such as speeding."
Essential Safety Checks Before You Travel
To mitigate risks, Armstrong strongly advises conducting a simple pre-journey inspection, especially if a vehicle has been unused. "Before starting any journey, take a few minutes to inspect it," he said. His recommendations for drivers include:
- Checking tyre pressure and tread depth.
- Ensuring all lights are functioning correctly.
- Topping up windscreen washer fluid.
- Verifying that windscreen wipers are in good condition.
The Broader Context of Soaring Insurance Costs
This New Year's warning comes against a backdrop of sharply rising car insurance costs across the UK. Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, explained the pressures. "Drivers are seeing their car insurance premiums soar by as much as 90 per cent," he stated.
Rourke attributed this to insurers battling a dramatic increase in claims costs, driven by rising repair expenses and labour shortages. He also pointed to economic factors: "As poor economic conditions bite, we are seeing claims in vehicle theft increasing alongside a rise in fraudulent claims." However, he offered a glimmer of hope, suggesting that if inflation slows and costs stabilise in the new year, some price pressure may ease.
Steve Dukes, CEO at Confused.com, echoed these concerns about affordability. "Premiums have increased so rapidly that we're seeing the highest prices recorded across all areas of the UK," he commented. Dukes cited the increased cost of claims and the higher value of cars on the road, such as electric vehicles, as key factors.
He issued a serious warning to the industry: "Insurers need to be doing more to keep prices affordable. Otherwise there’s a real risk that a large number of drivers could be priced off the road as motoring costs become unaffordable."
For those driving on December 31st, the message is clear: exercise heightened caution, prepare your vehicle, and be aware of the significant financial and safety risks present on what can be a deceptively hazardous night on the roads.
