Admiral to give £25 refund to all 4.4million car insurance customers
INSURER Admiral is giving a £25 refund to all of its 4.4million car insurance customers.
It comes as many drivers are stuck at home because of the coronavirus crisis, leading to a drop in claims.
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Admiral said it would refund £110million to its policyholders – a £25 refund for each car and van it covered as of April 20.
The refund will automatically be credited to customers by the end of May.
It said it's able to give customers the cash thanks to falling claims as fewer drivers are on the road due to coronavirus restrictions.
The £190million committed is equivalent to roughly a month's premium income, or a third of its 2019 profits, Admiral added.
The group has also pledged another £80million towards lowering prices, as well as for other initiatives to support NHS staff and local communities.
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This includes waiving all motoring claim excess fees for NHS and emergency service workers.
It also includes guaranteeing cover for customers using their vehicle to transport people, deliver medical supplies and equipment, or items to people who are self-isolating.
The announcement comes as figures yesterday showed that motor insurance premiums have fallen by 1 per cent - or £6 - on average in the first quarter.
But the data from Confused.com and Willis Towers Watson also found there was little evidence of an overall pricing trend due to uncertainty over the length of the lockdown.
Cristina Nestares, 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."
While Gareth Shaw, head of money at Which?, said: "People will remember how businesses treated them during this crisis, and Admiral's decision to provide partial refunds to all of its car and van policyholders will certainly be welcomed by customers experiencing unforeseen pressure on their finances.
"Firms that act fairly now may see that they are rewarded in the future, and we encourage all other car insurers to follow Admiral’s lead."
But James Blackham, chief executive of pay-by-mile car insurer By Miles, said the refund "doesn't go far enough".
He told The Sun: "We've calculated that over a two month lockdown, drivers could be between £35 to £58 out of pocket, for EACH car they own.
"It’s not nearly enough and doesn’t fairly reflect the impact on claims that lockdown is having."
"We can only hope that the rest of the UK industry follows their example, with increased refund amounts as it’s only fair that if you’re driving less, you pose less risk on the road."
Admiral has also been offering payment holidays to struggling customers who pay premiums monthly.
While other UK insurers - including Aviva, Churchill, Direct Line and More Than - have offered payment holidays to customers on a case-by-case basis.
Check out our guide on what support is on offer in our round-up.
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