Campaigners say the average motorist is being overcharged by more than £100 while insurance companies pocket the savings. And they have blasted them for “profiting from the pandemic” when many customers were forced to live on reduced incomes. They also accuse insurers of failing to pass on a further £35 saving from reforms designed to cut the number of phoney whiplash claims.

The Association of Consumer Support Organisations (ACSO) is calling on companies to cut premiums as official figures reveal a 31 percent drop in road traffic during travel restrictions.

The number of vans on the road fell by 14 percent in the year to March 2021.

Meanwhile, the number of all motor claims dropped by 28.5 percent – from 653,000 in 2019 to 493,000, according to the Compensation Recovery Unit.

With claims costs typically making up around 80 percent of premiums, ACSO said policyholders are due a cut of almost 23 percent, which would knock more than £100 off the average £465 premium.

Yet it has only fallen by seven percent, to £436 for comprehensive motor cover, according to the Association of British Insurers’ motor premium tracker.

And van insurance fell just two percent, to an average of £1,055.

ACSO director Matthew Maxwell Scott urged insurers to come clean about the profits they are making amid falling motor claims. He said: “While we wouldn’t expect premium prices to fall exactly in line with road use or claim numbers, the huge discrepancy means insurers are profiting from the pandemic.”

Although motor claims are now increasing as the country opens up, the long-term trend is still down as more people work from home.

Mr Maxwell Scott said: “Road use is unlikely to return to pre-pandemic levels any time soon.

“We don’t see any justification for insurers to ramp up prices. Premiums should be coming down.”

He said insurers blame high premiums on the cost of personal injury claims. But that is changing with the Government’s whiplash reforms – and he urged insurers to “immediately pass on the average £35 saving.”

Mr Maxwell Scott said Admiral is the only insurer to return premium overpayments to policyholders. The firm gave every car and van customer a £25 Stay at Home Refund, totalling £110million, to recognise they were driving less.

An Admiral spokesperson said the firm has also red-uced prices for renewed policies and new customers, with savings totalling £130million.

They added: “Admiral has always been committed to doing the right thing for customers.”

Other insurers said customers could contact them to request a rebate if their mileage has fallen dramatically, but less than one in 10 motorists have done so, according to figures from Which?

The consumer champion’s research shows car use fell by three quarters in the first lockdown, yet just one in five drivers got a refund. James Blackham, chief executive of specialist car insurer By Miles – which charges motorists according to the number of miles they drive – called on traditional insurers to treat customers fairly.

By Miles says insurers saved almost £530million last year and are reporting record profits – while failing to help furloughed, shiel-ding or isolating customers.

Mr Blackham said: “They have paid too much for car insurance while their cars have been sat outside. It’s not too late for insurers to do the right thing and issue refunds in line with savings they’ve made.” GoCompare motoring expert Ryan Fulthorpe said customers foot the bill through higher premiums when insurance costs rise, so should pay less when costs go down.

His company’s data shows drivers did not see premiums reduced until the final quarter of last year – up to six months after lockdowns were introduced and costs started falling.

Insurers are also under fire from the Financial Conduct Authority (FCA) which found six million loyal home and motor policyholders were overcharged by £1.2billion in 2018.

Customers who stay with the same insurer year after year typically pay more, while insurers cut premiums for new customers.

FCA figures show the average new customer pays £285 a year for motor cover, while those who have stayed with the same insurer for five years or more pay £370.

From next year, the FCA will ban insurers from charging more at renewal just for being an existing customer, saving customers an estimated £4.2billion over 10 years.

But confused.com chief Louise O’Shea said insurers will still raise renewal prices for loyal customers.

She warned: “While rules will stop insurers pricing new and renewing customers differently, it doesn’t guarantee you the cheapest price.”

Insurance trade body the ABI defended members, saying the average fully comprehensive premium fell to a five-year low of £436 this year, reflecting fewer miles being driven during lockdown and a competitive market. It said while claims fell 19 percent in 2020, car repair charges rose 17 percent.

It also said insurers are committed to passing on savings from whiplash reform – and the FCA will check this happens.