Motorists to get £110 million payout as claims plummet in lockdown
PUBLISHED: 14:59 21 April 2020 | UPDATED: 14:59 21 April 2020
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.
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.
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