With millions of cars sitting around unused, and masses still being paid to insurance premiums, what can the UK expect from car insurance companies during this difficult financial time?
If you own a car, it's the law to have car insurance. This means all of you car owners will be paying some money somewhere to keep yourselves covered. But, since the lockdown kicked in, the UK has started clocking in considerably fewer miles behind the wheel.
And with fewer cars on the road, comes fewer insurance claims meaning car insurance companies could be set to make heaps of cash whilst our wagons take a breather.
But recent action from Admiral has forced these companies to think twice about the lockdown gold mine and support their customers with refunds.
The Admiral refund
If you own one of the 4.4m vehicles covered by Admiral, you may have just hit the jackpot with a lockdown refund.
Admiral is the UK’s largest car insurance company and has pledged to give £110m of its earnings over the lockdown months back to its policyholders. This means offering a £25 refund for each car and van it covered as of 20 April.
Admiral has said that its customers can expect the refund by the end of May and will be contacted via email soon about their reimbursement.
The decision from Admiral is really encouraging and could be a massive help to those struggling to cope with the financial damages of coronavirus.
Although no other car insurance companies have followed suit as of yet, the news of the refund gesture has spread like wildfire across social media and the press.
This has piled immense pressure onto other car insurance companies to respond and do what they can to help.
If you're interested in purchasing a car insurance policy with Admiral, shop through Quidco and earn cashback on their reliable cover. Simply follow this link by clicking here to see how you can save.
If you want to see what other car insurance companies have to offer, Quidco Compare shows you all the best value policies and gives you cashback too. So if you do fancy saving money, and making money, head over to Quidco Compare by clicking here.
Fewer miles, more cash
At the moment, Admiral is the only car insurance company offering a direct refund, but there are other ways you can earn some money back.
Depending on your policy, a reduction in miles travelled may make you eligible for a partial refund. If your annual number of miles has reduced by 1,000 miles or more, most car insurance companies should be able to offer you some form of reimbursement.
1,000 miles may seem like a lot, but it’s not too crazy when you break it down.
Let’s say, as an example, that your average commute to work (there and back every day) is 30 miles in total and you work five days a week. When you stretch this over the seven weeks that lockdown is expected to last, you would have reduced your mileage by 1,050 miles.
If you think you may have knocked your mileage down enough to qualify for this refund, pick up the phone and get in touch with your car insurance provider.
Named drivers, but no driving
Despite coming second to mileage as the most likely means of earning a refund on your car insurance, the number of named drivers on your policy may open some doors for reimbursement.
Having more named drivers on your insurance policy tends to mean more money and that’s a pretty widely accepted reality. But, if some of your named drivers are not using the car for work or essential travel during lockdown, there may be a possibility for a refund.
Speak to your insurance provider and explain who is/isn’t using the car during lockdown and you may have a case to argue.
Quite simply, get in touch
The action taken by Admiral will mean that car insurance companies will do their utmost to keep you satisfied and support you as a customer. There’s no harm in picking up the phone, or typing out an email and asking your car insurance provider what they can do to help.
Aviva, for example, are offering a 90-day holiday payment for those who are struggling financially. Although the requirements for this are a bit specific, it’s worth making contact anyway to see if you’re eligible.
You can also earn cashback on Aviva insurance policies if you shop through Quidco. Follow this link, here and see for yourself.
Compare your policy
Despite very little driving being done, car insurance is still extremely important as it keeps you protected against accidents, theft and vandalism. It is also a legal requirement to have an owned car insured at all times unless you have a Statutory Off Road Notification.
So, if your insurance is coming up for renewal and you're unsure if you’ll be able to get it refunded, compare your policy with other companies and you could make some healthy savings.
With comparison sites like Quidco Compare, you can analyse a variety of car insurance policies from a wide range of providers to find the perfect cover for you.
And if you do use Quidco Compare, you can take your savings one step further. In addition to the extra change saved by switching insurance premium, Quidco Compare gives you cashback on top to maximise your savings.
To find out more about Quidco Compare and get a quote on your car insurance, follow this link, here.