While the global pandemic may have seen car insurance claims fall significantly, a new report has suggested the insurers did not pass on savings to the customer.
Data obtained from the Association of British Insurers has revealed that while claims fell by 48 per cent during coronavirus lockdown, only a select few insurers actually made any kind of financial gesture to their customers via reimbursement.
Traffic levels falling by 80 per cent led to the fall in accident claims, but while we weren’t driving our cars, we were still paying the same level of insurance premiums.
James Blackham is CEO of By Miles a company which is trying to change the face of car insurance by charging premiums only by the number of miles driven and he is accusing the insurance giants of not playing fair: “While this may look like insurers are passing on cost savings to customers who have been off the road for months - this is a red herring.
“Unfortunately, as anyone who has been unlucky enough to have to make a car insurance claim will know, receiving your payout takes time, meaning of the £2.1billion paid out over lockdown only a small proportion was for claims actually made during lockdown.
“At the start of lockdown we predicted that insurers would see £1billion in savings as UK drivers parked up their cars reducing risk and the need for payouts. With claims nearly halving between April and June, this looks accurate.
“The fact remains, if you're driving less, you should pay less. No cars on the roads over lockdown meant reduced risk and far fewer payouts.
“While we applaud the few who offered small refunds, no insurer is doing, or has done enough to pass on the savings gained in this period.”