LV= to refund car insurance customers up to £50
LV= is offering car and motorbike customers a partial refund of their premiums, but payments aren’t automatic.
The insurer has confirmed car and motorbike customers will be eligible for a refund of between £20 and £50 due to the savings it expects to make as a result of fewer claims.
While it has earmarked £30m to the scheme (a third of its 2019 profits), refunds aren’t automatic. Instead, customers will need to contact LV= and prove they’ve suffered financially as a result of coronavirus.
- Where they’ve yet to receive the 80% furlough payment
- Are self-employed and are unable to work or trade because of coronavirus, and haven’t yet received the 80% payment scheme via the government
- Were made unemployed at any point after 1 March 2020.
The refunds are also only available to direct car and motorbike customers (this includes those who bought via a comparison site), but excludes customers who bought cover via a broker.
‘Right thing to do’
Steve Treloar, chief executive of LV= General Insurance, said: “Right now, there are millions of families across the UK who are facing unforeseen pressures on their finances as a result of coronavirus.
“Our research shows that a third of people with motor insurance are currently concerned they will struggle to pay bills such as insurance premiums over the next three to six months with one in 10 saying they are very concerned at their ability to do so. We believe it’s vital and the right thing to do to concentrate the additional financial support we can offer on those who are really struggling.
“We spent a lot of time thinking about the best way to help customers and this enables us to give between £20 – £50, which to some families will make a real difference. In taking this approach, we can do more for those who need help the most.”
LV= added the measures are in addition to it reducing premiums by temporarily changing the cover customers have, such as reducing mileage or changing the cover to fire and theft if a car isn’t used during lockdown.
It has also waived administration and cancellation fees, as well as excess payments on claims by those who are hardest hit financially.
‘Car insurers saving £1bn due to lockdown’
LV= follows Admiral in the refund of motor premiums, however for the four million Admiral customers, the £25 refund was automatic.
James Blackham, CEO of pay by the mile insurer By Miles, said those who are driving less, should pay less.
“It’s as simple as that. Any customers who are looking for refunds from their insurer (if they haven’t been already) should contact their insurers and make this point.
“We forecast traditional car insurers will save in excess of £1bn due to the lockdown and hopefully today’s guidance from the FCA will see more car insurers do the right thing and pass on these savings – to all of their customers.”