Some comment from Ageas on the issue of Coronavirus refunds on car insurance;
“In these unprecedented times, we’re continuously reviewing our customer proposition to ensure we can reasonable adapt to best meet their needs.
In anticipation of customers travelling less, we can confirm that we have already reduced our pricing to reflect the current situation.
The lockdown has had a varied impact on our product lines. While motor claims frequencies have reduced, there are also a number of unknown variables such as how long we expect to be in lockdown, what impact this will have on travel habits when we return to normality, and whether there is a lag in personal injury claims. We continue to work with industry bodies and our intermediated distribution channel so that, when we have a more informed view on the situation, we will be in a better position to consider fair options for our customers.
Other actions we are taking include extending free breakdown cover to our direct customers who work for the NHS, and where a customer is a key worker (as defined by the UK government) and they need to travel to different locations, they don’t need to worry about changing their car insurance. And where a customer is helping their community by volunteering to deliver food or medicines, they do not need to extend their cover.”
Good news today for the UK’s car and van owners, as market leading car insurer Admiral decides to refund drivers £25 across the board. The refunds are automatic and you don’t have to fill a form in or apply by phone.
In the USA, many insurers have refunded on percentage terms, so a policyholder gets 15% or sometimes 20% of their monthly policy costs, again paid automatically. Others like American Family Insurance have refunded a straight $50, which is about £40 Sterling. Here’s the press info from Admiral – IE will update this story as other UK insurers announce similar partial refunds.
A Hastings spokesperson said:
“Our focus has been, and continues to be, to do the right thing for colleagues and policyholders and our communities during Covid-19. In addition to charity and colleague actions, we have already passed on a number of benefits to customers, including price reductions and fee waivers,and financial support for those with payment difficulties, and provided extra help and benefits for NHS and care workers including free breakdown. We do intend to pass further benefits back to customers and will communicate more on this as soon as we have firmed up our plans.”
Here’s the press info from Admiral;
Admiral, the UK’s leading car insurer, has revealed that it will give back £110million to its car and van insurance customers in recognition of the fact that its customers are staying at home and driving less during the UK wide Covid-19 lockdown.
A £25 refund will be automatically given to all customers for each car and van covered with Admiral as at 20th April 2020, a total of 4.4m vehicles.
Admiral is giving its customers the refund to reflect that there have been fewer cars on the road during the lockdown and it expects this to result in fewer claims.
Customers don’t have to take any action to receive the refund, it will automatically be credited to them by the end of May. Admiral will be contacting customers over the coming weeks to explain how they will receive the payment, but they can find full details about the refund by visiting www.admiral.com/stayathome
The combined initiatives in total are equivalent to roughly a month’s premium income, or a third of its 2019 profits, and passes on the savings from reduced claims the company may otherwise have benefitted from during the lockdown.
Admiral’s intention is to return estimated savings to its customers rather than benefit from reduced driving during the lockdown.
This just in from Cuvva;
Admiral appears to be the first UK insurer to offer a £25 rebate for those customers that hold a motor or van insurance policy with them, while vehicles sit at home unused, as a result of the countrywide lockdown.
Flexible insurance provider, Cuvva was amongst other industry players that put pressure on the incumbents to come to the party to better support their customers by offering fairer, more flexible insurance, in a time of need.
This follows the wide movement from a number of US insurers who committed to refunding customers due to less traffic on the roads, which lead to fewer accidents and fewer claims.
Commenting on the latest development in the UK insurance rebate debate, Cuvva founder, Freddy Macnamara said: “No doubt this is a step in the right direction, but a one month premium holiday split over the months of April and May would more accurately reflect motor usage during lockdown and extended periods of isolation.
“Motor insurance incumbents could make as much as £1 billion in profits from a reduction in claims of up to 50 per cent. It’s only fair that those funds are returned to customers automatically, in line with individual policies.”
Insurers in a number of other countries have also started offering customers rebates that more fairly aligns with customers actual motor usage during these periods of uncertainty.