Experts at insurance specialists By Miles have warned the latest lockdown will reduce vehicle use and therefore cut the number of accidents and cla
Experts at insurance specialists By Miles have warned the latest lockdown will reduce vehicle use and therefore cut the number of accidents and claims. They are appealing for firms to “take measures” to ensure drivers are getting a “fair deal” from their providers.
According to the Association of British Insurers, claims nearly halved in the first lockdown between April and June.
Total claims were down 48 percent during the first wave with experts warning insurers will make even more under the latest measures.
Experts at Safe Insurance has already predicted firms may have saved up to £4.4billion worth of savings during the course of the pandemic.
James Blackham, CEO of By Miles has claimed all savings should be passed onto the public to ensure drivers were not overpaying for cover.
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“We’re urging all insurers to be proactive and treat customers fairly with refunds.
“We know people driving less means fewer accidents and we know that insurers are enjoying increased profits from the savings.
“Those savings should absolutely be passed on to the public to prevent drivers from overpaying for insurance, and to support motorists at a financially difficult time.”
Since new lockdown measures came into force on 5 January, daily mileage has already dropped considerably.
He said: “It doesn’t make sense that a rebate was offered once, but not for the subsequent lockdowns in late 2020 or considered for the current lockdown.
“It shouldn’t be a lottery. We believe it’s only fair that insurers consider refunding drivers who are following the rules of the current lockdown to help stop the spread of the Coronavirus.”
By Miles said the pandemic had highlighted the benefit of flexible car insurance policies.
They added their members’ total insurance costs fell by 25 percent in 2020 due to the reduced mileage covered.