Car insurance refund: How to get a refund for your car insurance during lockdown
Under the government’s guidelines, only essential journeys are permitted with people told to stay at home unless travelling for food, health reasons or work. And with limited use of their vehicles during the lockdown, drivers may be wondering if they are entitled to refunds on their car insurance.
How to get a refund on your car insurance
No blanket changes have been in the UK so you should check with your insurance company to discuss possible refunds.
Last week, Admiral became the first UK insurer to offer refunds to customers.
The company is giving £25 back to all of its customers to reflect the current situation.
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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.”
Following Admiral’s decision, a group of cross-party MPs have written a letter to the Chancellor of Exchequer to urge other firms to follow suit.
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The letter, addressed to Rishi Sunak, reads: “Car insurers have reported an almost 50% drop in claims during lockdown.
“Furthermore, the UK government has stated that driving is down by 75% as a result of lockdown.
“Accordingly, it has been calculated that insurers are set to make £1 billion profit from all of the motorists who cannot drive right now.”
It continues: “It is important to also note that it is the nature of the motor insurance business not to cover risk in other insurance sectors.
“This means these motor insurance premiums are not offsetting losses in other areas.
“Therefore, there is a direct correlation between the drop in claims, driving activity during lockdown and insurance company profits.”
Cancelling your car insurance policy can result in cancellation fees and admin charges.
So it’s important to contact your insurer to discuss your options amid the coronavirus lockdown.
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A spokesperson for the Association of British insurers said: “Your motor insurer can advise on any options that may help reduce your premium, or if you are worried about being able to continue to pay premium instalments.
“Any premium adjustments or refunds will be a matter for individual insurers.”
The only circumstance in which car insurance doesn’t have to be paid is when a vehicle is declared off the road with a SORN (Statutory Off Road Notification).
However, a car that is declared SORN cannot be driven and must be parked off public roads.
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