Yahoo Finance Coronavirus: Admiral to refund £110m to car insurance customers
Admiral (ADM.L) has said that it will give back £110m ($136m) to its car and van insurance customers in recognition of the fact that people are staying at home and driving less during the UK coronavirus lockdown.
All customers will automatically receive a £25 refund for every car and van covered with Admiral, a total of 4.4 million vehicles.
Admiral said the refunds will be made by the end of May to “reflect that there have been fewer cars on the road during the lockdown” which the insurer expects to result in fewer claims.
The company has also pledged an additional £80m to reducing prices and supporting customers, NHS staff, and the local community.
Admiral said the combined cost of its COVID-19 initiatives is equivalent to roughly a month’s premium income, or a third of its 2019 profits, and passes on the savings from reduced claims the company may otherwise have benefitted from during the lockdown, with the intention of returning estimated savings to its customers instead.
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The company is also 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.
NHS staff and emergency service workers can also receive 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.
The insurer said it is being flexible with customers struggling with monthly payments for insurance and personal loans and has already reduced prices for its motor insurance customers, to support people who may have lost their jobs or are living on reduced incomes due to the coronavirus pandemic.
All admiral employees are being paid their full salary during the coronavirus lockdown and no staff are being furloughed under the UK government funded scheme.
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.
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“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.”
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