Search

Motorists to get £110 million payout as claims plummet in lockdown

PUBLISHED: 14:59 21 April 2020 | UPDATED: 14:59 21 April 2020

Motorists are getting a rebate from Admiral insurance firm. Pic; Archant

Motorists are getting a rebate from Admiral insurance firm. Pic; Archant

Drivers are set to get £25 refunded on their car or van insurance from Admiral as claims plunge with fewer drivers on the roads amid the coronavirus lockdown.

The firm said it will pay out the cash to each of the 4.4 million vehicles covered as of April 20 with refunds being made by the end of May.

Admiral said it was able to give customers the cash thanks to falling claims due to Covid-19 restrictions.

The group also pledged another £80 million towards lowering prices for cover to reflect the drop in claims, as well as for further initiatives to support NHS staff and local communities.

MORE: Vehicle firm gives Mini to NHS for use in lockdown

This includes waiving all motoring claim excess fees for NHS or emergency service workers and guaranteeing cover for customers using their vehicle to transport people, deliver medical supplies and equipment or items to people who are self-isolating.

Chief executive Cristina Nestares said: “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 group added that the £190 million committed is equivalent to roughly a month’s premium income, or a third of its 2019 profits.

It stressed that it has not furloughed any of its staff and continues to pay them their full salary.

It comes as figures from Confused.com and Willis Towers Watson recently showed that motor insurance premiums have fallen by 1% – or £6 – on average in the first quarter.

Consumer group Which? called for other insurers to follow suit and offer policyholders rebates and premium price cuts.

The average price of car insurance in the East of England increased by £27 (4pc) in the past year to now stand at £681.

For more updates on coronavirus in Norfolk see the Facebook page here


If you value what this story gives you, please consider supporting the Eastern Daily Press. Click the link in the yellow box below for details.

Become a supporter

This newspaper has been a central part of community life for many years, through good times and bad, serving as your advocate and trusted source of local information. Our industry is facing testing times, which is why I’m asking for your support. Every single contribution will help us continue to produce award-winning local journalism that makes a measurable difference to our community.

Thank you.

Most Read

Most Read

Latest from the Eastern Daily Press