Car insurers under pressure to refund drivers unable to use vehicles in lockdown after Admiral pays back £25

PRESSURE is mounting on car insurers to refund motorists unable to use cars in the lockdown – after Admiral handed back £25 to each policyholder.

Motoring insurance companies stand to make an extra £1 billion if claims fall by 50 per cent this year because drivers are staying off the roads which has led to calls for cashback on policies.

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Now Admiral has written to every policyholder to say they will get an automatic £25 refund ‘in recognition’ of those who have stayed at home and saved lives.

The company is famous for its multi car policies and the letter, from CEO Cristina Nestares, vows to give £25 for every car and van insured, not just to every customer so someone with three cars will get £75 for instance.

With 4.4 million policies, it means the giveaway comes to £110 million.

More insurance companies should do the same, according to Gareth Shaw, head of money at the consumer organisation Which?.

‘ACT FAIRLY NOW’

“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,” he said.

In the letter sent out on Tuesday Nestares said: “People like you are helping to save lives by staying at home.

“With fewer cars on the roads during the UK lockdown, we’re seeing a reduction in the number of claims coming in.

“We want to give the money we would have used to pay these claims back to our loyal customers in this difficult time.”

The company has asked customers not to contact them but wait for further details over the next few weeks about receiving the money.

Admiral has also changed the policy details for NHS and emergency workers to ensure they stay on the road in the event of an accident and set up a £4 million support fund to help those in need in south Wales where the company is based.

The letter added: “Our dedicated staff are all receiving full pay. No staff are being furloughed under the UK Government-funded scheme.”

Households struggling to pay monthly car and home insurance premiums due to coronavirus may be able to get a payment holiday.

And here’s how to get a refund on your insurance if you’ve been impacted by coronavirus.

Meanwhile, experts have warned that drivers making “non-essential” journeys could void their insurance.