Admiral to refund policyholders for staying home during COVID-19 lockdown

UK insurer Admiral has revealed that it will give back £110 million to its car and van insurance policyholders who are staying at home and driving less during the UK wide COVID-19 lockdown.

A £25 refund will be automatically given to all motor customers covered with Admiral as at April 20, a total of 4.4 million vehicles.

Admiral said that is giving 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.

Additionally, it has commited £80 million to reducing prices and supporting customers. Admiral is waiving any motoring claims excess fees for NHS or emergency service workers and supporting NHS volunteers by guaranteeing cover for customers using their vehicle to transport people, deliver medical supplies and equipment, or items to people who are self-isolating.

“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," said Cristina Nestares, CEO of UK insurance at Admiral.

The company stated that its intention is to return estimated savings to its customers rather than benefit from reduced driving during the lockdown.

Nestares 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.