‘Stingy’ car insurers keeping £1bn profit
INSURANCE firms are under fire for fobbing off customers with “stingy” rebates during the coronavirus crisis.
Car insurers are believed to have saved more than £1billion after accident claims fell by nearly 50 per cent due to customers driving fewer miles during the first national lockdown.
But consumer watchdogs say the industry is dragging its feet in passing on the savings to motorists, and refusing to offer them automatic refunds.
Martyn James, of complaints site Resolver, said: “The industry is saving an awful lot of money and yet none of that is being passed on to consumers.
“A £15 rebate is a stingy sum designed to stop people asking for more.
“And the majority of insurers are not offering anything at all.”
Admiral gave its customers an automatic £ 25 rebate after its half- year profits jumped 30 per cent to £287m.
Latest figures show motor claims dropped by 48 per cent, from 678,000 between January and March to 324,000 in the following four months.
Pay-as-you-go insurer Cuvva says the industry must have made an extra £1bn.
Gareth Shaw, of consumer group Which?, said: “Drivers will feel hard done by if they continue to pay for an insurance policy that doesn’t reflect their current circumstances.”
The Association of British Insurers said: “People still need to be insured against the risk of theft and malicious or accidental damage whether they are doing 2,000 or 20,000 miles.
“Insurers continue to give extra support during the pandemic, in some cases, adjusting premiums to take into account lower-than-expected mileage.”