Admiral is to give back £110 million to its 4.4 million car and van insurance customers stuck at home during the UK lockdown.
In a letter to customers, the insurance group says: "With fewer cars on the roads during the UK lockdown, we’re seeing a reduction in the number of claims coming in. We want to give the money we would’ve used to pay these claims back to our loyal customers in this difficult time."
Admiral says the package equates to to roughly a month’s premium income, or a third of its 2019 profits.
The move has been welcomed by consumer groups and will put pressure on other insurers to follow suite.
Gareth Shaw, the head of money at Which?, says: “People will remember how businesses treated them during this crisis, and Admiral’s decision to provide partial refunds to all of its car and van policyholders will certainly be welcomed by customers experiencing unforeseen pressure on their finances.
“Firms that act fairly now may see that they are rewarded in the future, and we encourage all other car insurers to follow Admiral’s lead.”
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.