Lower accident rate brings down Danish car insurance premiums

Cars on a Danish motorway in April 2020. A lower accident rate, linked to reduced traffic resulting from Covid-19, has led to some insurance companies cutting premiums.
Cars on a Danish motorway in April 2020. A lower accident rate, linked to reduced traffic resulting from Covid-19, has led to some insurance companies cutting premiums. Photo: Claus Fisker/Ritzau Scanpix
A fall in the number of road traffic accidents in Denmark has resulted in lower insurance costs for some motorists, according to a media report.

Several insurance companies have chosen to reduce premiums in response to a drop off in accident numbers in 2021, broadcaster DR reports.

Companies to have reduced rates include Vestjyllands Forsikring, Thisted Forsikring and GF Forsikring, according to DR.

Less traffic on roads due to the Covid-19 pandemic is a direct cause of the lower accident rate, a spokesperson from one of the companies told the broadcaster.

In a report published in June 2021, national agency Statistics Denmark said that the number of fatalities, serious and mild injuries caused by road traffic accidents in 2020 was the lowest since records began in the 1930s.

Reduced traffic due to Covid-19 restrictions must be regarded as a factor in this, the agency wrote.

More people have worked from home since the coronavirus emerged in Denmark, both during lockdowns and in periods when restrictions were eased.

Additionally, fewer motorists took their cars on holidays outside of Denmark.

FDM, a Danish interest organisation for motorists, said it welcomed the price reductions.

“We have long been able to see that accident costs and the number of accidents is declining but this was not reflected in the cost of car insurance. So it’s good that some companies are now reducing their prices,” FDM consumer economist Ilyas Dogru said in comments reported by DR.

READ ALSO: Driving in Denmark: When should you change to winter tyres?


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