Can I get a refund on my car insurance because of coronavirus?

With the coronavirus lockdown impacting car use, many drivers may be able to claim a partial refund on their insurance premiums.

Land Rover Discovery Sport - long termer - handover

The UK’s coronavirus lockdown is still in full effect, with many drivers using their cars far less than they would be normally. As such, it’s understandable that some motorists may feel short-changed if they’re paying for a car insurance policy they’re not using.

The good news is that, depending on the details of your insurance policy, a change in one or more aspects of your car’s use as a result of the lockdown could make you eligible for a partial refund on your premium, whether it’s paid monthly or annually. Below we look at how a reduction in mileage travelled or a change to the named drivers using the car could entitle you to some money back from your insurer. 

Mileage

Unless you’re a key worker having to use your car for a longer commute than before, the chances are you’re driving a lot less during the coronavirus lockdown. Across the whole country, vast numbers of people are either working from home or have been furloughed, while many self-employed have been forced to shut down their businesses temporarily. As a result of this and the government advice to only undertake essential travel, there are far fewer people driving their cars and many cars are being driven a lot less.

Motorists may be surprised by how much less they’re using their cars than usual. For example, someone who works Monday to Friday and has a commute of 30 miles would travel 1,000 fewer miles over the course of a lockdown lasting seven weeks.

As such, they would be able to contact their insurer and reduce their annual mileage limit by 1,000 miles, potentially earning them a partial refund on the annual or monthly payments for their premium.

A spokesperson for Direct Line Group - which is made up of insurers such as Direct Line, Churchill and Green Flag among others - told Auto Express: “During lockdown, a large proportion of customers will change the way they use their cars, and driving less frequently is an example of this.

“If a customer believes that their mileage will be a lot lower than originally estimated at the start of their policy, they can contact us and we can process a refund. As long as you’re reducing mileage by at least 1,000 miles per annum and you’re not already on a particularly low estimated annual mileage, a refund will generally be available.”

Named drivers

Although mileage is the main factor of your insurance policy that is likely to change during lockdown and save you money, named drivers are another possibility.

As a general rule, putting a named driver on your insurance policy will increase the cost of your premium. If you have one or more named drivers on your policy who aren’t using the car during lockdown, consider phoning your insurer and discussing this with them - it might be possible to temporarily remove them and get some money back.

If in doubt, pick up the phone

The point about contacting your insurer is one that applies on a wider basis. Insurers are aware that the lockdown is causing concern for many people, some of whom are experiencing financial difficulties.

If you have any questions about your policy, how you may be able to get some money back or if you’re worried about payments, give your insurance provider a call.

Admiral to issue £25 refund to all customers

If you hold a car or van insurance policy with Admiral, then you're in luck. The insurer is issuing a £25 refund for every vehicle it insures - that means if you have two cars insured with the firm, for example, you'll get £50 back.

You don't have to do anything to claim this refund. As long as your policy is active and was taken out before 20 April 2020, you'll receive your refund by the end of May. In the meantime, Admiral is contacting customers to explain to them how their refunds will be issued.

Click here for a chance to win a £25 Amazon voucher by answering a few questions on how lockdown has affected your car-buying process...

Recommended

Driving licence body faces huge backlog cases due to strikes and Covid disruption
Driving licence
News

Driving licence body faces huge backlog cases due to strikes and Covid disruption

Some drivers have been unable to get on the road due to 1.4 million DVLA applications waiting to be processed
22 Jul 2021
New-car market hit by “long Covid” as sales struggle
Tesla Model 3 - front
News

New-car market hit by “long Covid” as sales struggle

June’s registration figures show a 28 per cent rise over 2020, but sales still down 16.4 per cent on 10-year average
5 Jul 2021
Geneva Motor Show rescheduled for 2022
Geneva
Geneva Motor Show

Geneva Motor Show rescheduled for 2022

The GIMS organisers have announced the event will return next year, after this year’s show was cancelled due to the coronavirus pandemic
28 May 2021
UK car production on the mend but not fully recovered
Production line
News

UK car production on the mend but not fully recovered

A total of 68,306 cars were built in the UK in April 2021, up 34,573 per cent from last year’s factory shutdowns, but still short of pre-Covid levels
26 May 2021

Most Popular

New 2021 Audi RS 3: 395bhp mega hatch priced from £50,900
Audi RS 3 Sportback - front
Audi RS3

New 2021 Audi RS 3: 395bhp mega hatch priced from £50,900

Full exterior and interior reveal for Audi RS 3, with aggressive styling and racy cabin to match strong performance
19 Jul 2021
New 2021 Kia EV6 boasts up to 328 miles of range
Kia EV6 - front
Kia EV6

New 2021 Kia EV6 boasts up to 328 miles of range

Kia reveals more specs for its bespoke electric car, with the EV6 offering long range and an 18-minute 80 per cent rapid recharge time
21 Jul 2021
New 2022 Range Rover Sport spotted testing on the road
Range Rover Sport spyshot 1
Land Rover Range Rover Sport

New 2022 Range Rover Sport spotted testing on the road

Land Rover’s replacement for the Range Rover Sport will get racier styling and an all-new electric-ready platform
20 Jul 2021