Admiral has revealed that it will give back £110m to its car and van insurance customers in recognition of the fact that its customers are staying at home and driving less during the nationwide lockdown.
A £25 refund will be automatically given to all customers for each car and van covered with the car insurer, which is currently a total of 4.4m vehicles.
Admiral is giving its customers 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.
The refund will automatically be credited to customers by the end of May, and the group will now be contacting customers over the coming weeks to explain how they will receive the payment.
The combined initiatives in total are 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.
Admiral’s intention is to “return estimated savings to its customers rather than benefit from reduced driving during the lockdown”.
The £110m refund to customers also “forms the focus of Admiral’s commitment to supporting customers, NHS staff and the local community during the coronavirus crisis”.
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.”
She added: “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.
“We also 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.”