You are here: Home - Insurance - News -

Car insurers urged to refund drivers unable to use vehicles

0
Written by:
07/04/2020
Car insurers are being urged to pass savings they’re making as a result of lockdown measures onto customers.

It comes as two major insurers in the US said they would refund drivers some of their premiums, or offer a discount, because they’re stuck at home in lockdown, which has resulted in a dramatic decline in accident claims.

It is hoped this news will spur insurers in the UK to do the same.

Pay per mile insurer By Miles said many drivers are paying for services they’re not using during a financially uncertain time, with young drivers hit hardest. This is because some may be paying around £200 a month for car insurance while staying at home.

The firm says the current situation is only benefiting car insurers, which stand to make in excess of £1bn from a reduction in claims.

Its own data reveals a 69% decrease in daily average miles driven nationwide since lockdown and a 72% decrease in London.

James Blackham, founder and chief executive of By Miles, said: “We’re challenging traditional car insurers to recalculate their rates and make insurance fair under these extraordinary circumstances. As people are driving far fewer miles while in lockdown, the number of insurance claims due to accidents also decreases – and those savings should be passed on to the public.

“Members of the Association of British Insurers (ABI) have pledged support for people affected by the Covid-19 pandemic, but for as long as traditional insurers continue to charge a fixed amount regardless of how many miles someone drives, motorists will continue to be overcharged.

“Policyholders must be able to request a premium reduction or extra months added onto their policy – anything else isn’t treating customers fairly.”

The ABI said refunds or discounts were down to individual insurers and any financial concerns should be discussed with the insurer.

An ABI spokesperson, said: “Home, motor and travel insurance providers have committed to offering enhanced customer support and flexibility during this difficult period. It is a commercial decision by individual firms if they want to compensate their customers with payment holidays. Insurers are encouraging customers who face difficulty paying their premium to speak to them. “

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • "The government needs to support the removal of non-ACM cladding from buildings that are under 18 metres as well,"… https://t.co/WW5ONNqBdH
  • RT @DASLegalUK: The nation has turned to online shopping, but what are our retail rights if we face issues with delivery, faulty items, ret…
  • The nation has turned to online shopping, but what are our retail rights if we face issues with delivery, faulty it… https://t.co/HOAf3COpYK

Read previous post:
Government extends guidance against all but essential travel: your refund rights

The Foreign and Commonwealth Office (FCO) has extended its warning against all but essential international travel for an indefinite period....

Close