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Admiral announces car insurance refunds to help struggling customers
21st Apr 2020 11:14
(Sharecast News) - Admiral announced it would give its customers ?25 refunds to reflect the fact that fewer road journeys are being made during the coronavirus lockdown.
The car insurer said that it would return a total ?110m to its policyholders, an amount equivalent to a ?25 refund for each of the 4.4m cars and vans that it covered as of 20 April.
Insurers have been improving their benefits in recent months as accident and breakdown claims fall due to the lockdown even as monthly payments continue to roll in. According to the Guardian, some industry estimates suggest insurers could save up to ?1bn as a result.
Admiral has pledged a further ?80m to support NHS staff, as well as a ?4m Covid-19 support fund in south Wales, where Admiral is based.
NHS and emergency service workers will also be given a free courtesy vehicle if their vehicle is stolen, left undriveable after an accident, or declared a total loss.
Cristina Nestares, the chief executive of UK insurance at Admiral, 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 move may trigger similar actions from by car insurance companies.
The car insurer said that it would return a total ?110m to its policyholders, an amount equivalent to a ?25 refund for each of the 4.4m cars and vans that it covered as of 20 April.
Insurers have been improving their benefits in recent months as accident and breakdown claims fall due to the lockdown even as monthly payments continue to roll in. According to the Guardian, some industry estimates suggest insurers could save up to ?1bn as a result.
Admiral has pledged a further ?80m to support NHS staff, as well as a ?4m Covid-19 support fund in south Wales, where Admiral is based.
NHS and emergency service workers will also be given a free courtesy vehicle if their vehicle is stolen, left undriveable after an accident, or declared a total loss.
Cristina Nestares, the chief executive of UK insurance at Admiral, 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 move may trigger similar actions from by car insurance companies.