Can I Get a Refund on My Car Insurance Admiral
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Admiral, a major UK car insurance provider, is refunding its car and van insurance policyholders £25 each to reflect the fact that fewer road journeys are being made during the coronavirus lockdown.
Fewer journeys has led to a reduction in road traffic accidents and a contingent reduction in claims.
The move may trigger similar actions from other car insurance companies. The industry in the UK has been criticized for not making a financial gesture to customers, with companies in North America, Europe and Australia having already announced that they would return money to policyholders.
Admiral's automatic refund will be given to all customers at the end of May for each car and van covered by the company as of 20 April 2020. With 4.4 million vehicles on its books, this amounts to £110 million.
In addition to customers of the main Admiral brand, the refund will be provided to policyholders with the firm's other car insurance brands – Bell, Elephant and Diamond – and its van insurance operation, Gladiator.
No action by customers is required. Admiral will contact policyholders to explain how they will receive the payment, but full details are available here.
Support for key workers
The company is also spending £80 million to support key workers during the coronavirus crisis by waiving any excess payments for NHS or emergency service workers who claim on their car insurance.
The excess is the amount paid by a policyholder towards the cost of a claim and typically amounts to £250.
NHS and emergency service workers will also be given a free courtesy vehicle if their vehicle is stolen, undriveable after an accident, or declared a total loss, to keep them on the road during the lockdown
Admiral is also supporting NHS volunteers by guaranteeing cover for customers using their vehicle to transport people, deliver medical supplies and equipment, or bring items to people who are self-isolating.
Cristina Nestares, CEO 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. We have also already reflected this change in driving behaviour in our pricing for customers and will continue to do so."
The initiative is set to cost Admiral around a third of the profit it made in 2019.
Innovators demand more action
Freddy Macnamara, head of challenger insurance brand Cuvva, has been one of the main critics of the traditional insurance sector, saying firms should offer fairer, more flexible terms during the pandemic.
He described Admiral's move as a step in the right direction: "Motor insurers as a whole could make as much as £1 billion in profits from a reduction in claims of up to 50 per cent (during the coronavirus lockdown). It's only fair that those funds are returned to customers automatically, in line with individual policies."
James Blackham, CEO of By Miles, which offers pay-as-you-go car insurance, said Admiral's £25 refund is welcome but insufficient: "It's not nearly enough and doesn't fairly reflect the impact on claims that lockdown is having.
"We've been fighting for fair treatment of UK drivers during the lockdown, so we can only hope that the rest of the industry follows Admiral's example, with increased refund amounts. It's only fair because, if you're driving less, you pose less risk on the road, and should rightly pay less for your car insurance."
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Can I Get a Refund on My Car Insurance Admiral
Source: https://www.forbes.com/uk/advisor/personal-finance/2020/04/21/uk-car-insurer-admiral-announces-customers-refunds-and-support-for-key-workers/