Customers will receive £25 for each car and van covered by the personal lines insurer
Personal lines insurer Admiral has confirmed that it will be issuing an £110m automatic refund to all its car and van insurance customers, in recognition that they are staying at home and driving less during the continued national lockdown, imposed to quell the spread of coronavirus.
The refund, which will apply for all cars and vans insured with Admiral as at 20 April, will automatically award £25 for each car and van covered by the insurer – Admiral said this amounts to 4.4m vehicles. Customers should automatically receive their refund by the end of May.
Admiral’s refunds are designed to reflect the fact that there have been fewer cars on the roads since the UK-wide lockdown begun – the firm expects that this will, therefore, result in less claims.
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. We have also already reflected this change in driving behaviour in our pricing for customers and will continue to do so.
“The Admiral Stay At Home Refund was launched to recognise the considerable efforts people are making by staying home as much as possible and as a result driving less. Customers don’t have to contact us to receive this, we’ll be in touch with them in the coming weeks to explain how we’ll refund them.”
The refund for car and van customers forms part of Admiral’s wider £190m package of coronavirus response measures.
This includes waiving any motor claims excess fees for NHS or emergency service workers and guaranteeing cover for customers who are using their vehicles to transport people, deliver medical supplies and equipment, or sundry items to people who are self-isolating. The insurer is also providing free courtesy vehicles to NHS and emergency service staff if their vehicle is stolen, undriveable after an accident, or declared a total loss, to keep them on the road during the lockdown.
To support customers who may be experiencing financial hardship as a result of the Covid-19 lockdown, Admiral has confirmed that it is being flexible with policyholders who are struggling with monthly payments for insurance and personal loans – the organisation has already reduced its motor insurance prices to accommodate the current crisis.
Admiral is further partaking in charitable giving with its £4m Admiral Support Fund for Covid-19; this is predominantly providing funding and support around the firm’s south Wales base to the NHS, charities and support groups. The fund will also enable the insurer to contribute towards any insurance industry-wide charitable efforts.
Looking to its staff, Admiral continues to pay employees their full salary and the firm does not expect to have to furlough any staff under the government’s funded scheme. Admiral also clarified that as a personal lines insurer, the company has no exposure regarding the ongoing discussion surrounding business interruption (BI) claims.
Nestares added: “During this challenging period, our main priorities have been helping our customers, supporting our local community and protecting the wellbeing of our staff, which is why we have introduced these initiatives to give something back to the customers and communities we serve.
“There may be fewer cars on the roads at the moment, but for many NHS and emergency services workers their cars are vital for them to get to work.
“At the best of times it’s stressful if you’re involved in an accident, so we’ve implemented new measures to take some of the pressure off and ensure they can stay on the road. We wanted to show our support for NHS workers in all roles; from doctors and nurses to admin teams and cleaners, they are all doing a brilliant job of helping to save lives and keep the NHS running smoothly during this crisis.”
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