Admiral to refund car and van insurance customers for staying at home
The insurance giant will give £25 back to each of its 4.4 million car and van insurance customers as a reward for following government advice and staying at home.
In total, it will refund £110m to customers whose vehicles were covered on 20 April 2020.
Customer’s don’t need to do anything to receive the Admiral Stay at Home refund as it will automatically be applied in the coming weeks, with an aim to have the money credited by the end of May. It will contact customers to explain how customers will get the payment.
Admiral said the refund reflects the fact that there are fewer cars on the road during lockdown and it expects fewer claims.
A post on its website read: “The refund and other initiatives pass on the savings from reduced claims we may otherwise have benefited from during the lockdown.
“It isn’t our intention to benefit from the lockdown and we’re returning our best estimate of the savings to our loyal customers.”
It comes as UK insurers were urged earlier this month to refund drivers unable to use their cars during lockdown as two insurance giants in America took the step to repay drivers some of their premiums, or offer a discount, because they’re stuck at home.
Last week insurer Aviva introduced a three-month payment deferral scheme for car and home insurance customers struggling financially as a result of coronavirus. However, customers would need to pay the difference through higher monthly premiums at a later point.
Mike Powell, car insurance expert at Defaqto, said: “If you’re struggling to pay your monthly premium for your car or home insurance, it’s essential you contact your insurance provider to discuss how it can help.
“Some providers are allowing customers to defer the payments and are offering a ‘payment holiday’. A number are including information on their websites about potential help, so it’s advisable to research the help available and contact your insurance provider as soon as possible.”