There is increasing pressure on UK car insurers to refund drivers who are not able to use their vehicles during the lockdown period. Less cars on the road means less accidents are happening, which results in a reduction of insurance claims being reported.
Admiral has decided to pass on some of the savings they are making as a result of fewer drivers on UK roads and has already refunded £25 to each of their policyholders to help them through these tough times.
The £25 refund will automatically be credited to all Admiral customers with an active car or van insurance policy that started before April 20th this year. There are almost 4.4 million vehicles insured by Admiral, which equates to a cashback package of £110 million to their UK policyholders.
The refund programme is part of a larger £190 million package for Admiral customers, with the other £80 million going towards reductions in insurance premium prices.
Cristina Nestares, CEO of UK Insurance at Admiral, said: “During this challenging period, our main priorities have been helping our customers, supporting our local community and protecting the wellbeing of our staff, which is why we have introduced these initiatives to give something back to the customers and communities we serve.
“This is an unprecedented time when people across the country are driving significantly less than before the lockdown, and we expect this to lead to a fall in the number of claims we are seeing. We want to give the money we would have used to pay these claims back to our loyal customers in this difficult time. We have also already reflected this change in driving behaviour in our pricing for customers and will continue to do so.”
The Head Of Money at consumer organisation Which? has called for more insurance companies to follow the move by Admiral. Gareth Shaw commented; “Firms that act fairly now may see that they are rewarded in the future, and we encourage all other car insurers to follow Admiral’s lead.”
Admiral are also helping to ensure that NHS staff and emergency workers who are involved in an accident during the pandemic will not have to pay any excess fees, whilst people who use their car as an NHS volunteer will be guaranteed cover to ensure they can continue to help people get to hospital or deliver vital medicines and medical equipment.