The company expects this to result in fewer insurance claims.
Last week, we reported that the average car insurance premium has hit £755. This was countered by the potential for cheaper premiums in the second half of the year. Admiral is the first company to act.
The company says the refund – which will be automatically credited to customers by the end of May – will affect 4.4 million vehicles. It’ll cost Admiral £110 million – a third of its 2019 profits. In what could be a lesson for other providers, it says it is passing on ‘the savings from reduced claims the company may otherwise have benefited from during the lockdown’.
In addition to the refund, Admiral is waiving any excess fees for NHS or emergency workers. It’s also guaranteeing cover for customers using their vehicle to transport people, deliver medical supplies and equipment, or items to people who are self-isolating.
‘Give something back’
Cristina Nestares, CEO of UK insurance at Admiral said: “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.
“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.
“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.”
Click here for more information on the Stay at Home Refund.