Car insurance: Drivers could secure a refund if mileage has been a ‘lot less’ in lockdown

Morning Live: Expert shares tips on car insurance

When you subscribe we will use the information you provide to send you these newsletters.Sometimes they’ll include recommendations for other related newsletters or services we offer.Our Privacy Notice explains more about how we use your data, and your rights.You can unsubscribe at any time.

They warn insurance providers could offer drivers a “pro-rata premium refund” if they have driven less than they were expected to. However, road users should keep an eye on any “administration fees” to ensure updating their details in the hope of a refund will not see costs rise.

Ryan Fulthorpe, car insurance spokesperson at Go Compare, said drivers should ”always be honest” when dealing with their provider.

He told “Drivers can inform insurers during their policy term if their originally quoted mileage is now going to be a lot less due to driving restrictions.

“Insurers may offer a pro-rata premium refund based on the new mileage that will be driven.

“Always be honest in these situations and under-declaring mileage could result in a rejection should you ever need to claim.

“Always check the administration fee for changes with your insurer as well to make sure that declaring these changes is cost-effective in the long run.

“It’s also worth remembering that as lockdown restrictions begin to ease, drivers should check whether the annual mileage they declared when they took out their policy is still correct and advise their insurer if this has increased.”

Only a handful of firms have offered a form of car insurance refund or discount as a result of lockdown.

Admiral and LV offered money back in the Spring of last year as they expected fewer claims as a result of the shutdown.

Martin Lewis urges drivers to change the day they renew car insurance [INSIGHT]
Pets could ‘write off’ hundreds of insurance policies [COMMENT]
Car insurance experts disclose ‘best way’ to save on prices [ANALYSIS]

LV customers were eligible for a refund of between £20 and £50 if they have suffered financially as a result of the pandemic.

Meanwhile, Admiral customers were automatically given a £25 refund at the end of May last year.

The two firms joined over 20 major US car insurers who have done the same thing with many passing back billions of pounds to customers.

Some American firms have issued refunds of up to 15 and 25 percent on premiums as a result of the pandemic.

Finance expert Emmanuel Asuquo has also urged drivers could also receive some money back if they have overestimated their yearly mileage.

He said: “For a lot of us when we took out our insurance we said how many miles we thought we were gonna do.

“However we’ve been on lockdown and a lot of people haven’t been out, haven’t been driving as much.

“So if you haven’t driven as much you could get money back.

“All you have to do is call your provider, let them know how many miles you think you’re going to do.

“And then if it’s below what you agreed in the beginning there could be money back.”

Instead of offering discounts many firms allowed custonrs to ask for price freezes or payment plans. 

Many policies also extended cover which has allowed drivers to travel to a new place of work without needing a new agreement. 

Source: Read Full Article