COVID-19 and insurance reductions

[mikemillar]

In the USA, insurance companies are giving their customers reductions and refunds due to reduced driving (despite limited lockdowns) New York Times Fed Steps In to Push Banks to Provide Small Business Loans: Live Updates And Premium Relief Payment & FAQs| American Family Insurance
Is it too much to expect similar refunds from UK insurance companies? Claims must be negligible at the moment. Answers on a postcard please........

 

[speedyranger74]

Unfortunately give back moneys from this authorised thefts it's almost impossible.
The banks also are AT

 

[NorfolkMustard]

If you give them a reduced annual mileage estimate they'll probably reduce it a bit. As the end-date is unknown is would be a guess though.

 

[pdk42]

Can't see it happening. Maybe reduced claims might lead to cheaper premiums next year?

 

[Daverh]

If you give them a reduced annual mileage estimate they'll probably reduce it a bit. As the end-date is unknown is would be a guess though.

Might be worthwhile for high mileage drivers but for others I'll bet that their admin fee (£25-£50) eats up any discount.

 

[NorfolkMustard]

Americans pay much higher insurance than us I think - I've heard a couple of people say they pay the same in insurance per month as their car loan payments.

Average Cost of Car Insurance (2020)

The cheapest state (Maine) average is $1,200 - twice the UK average. most expensive state (Michigan) average is $8,700 - 15 x the UK average

 

[MaDProFF]

If you give them a reduced annual mileage estimate they'll probably reduce it a bit. As the end-date is unknown is would be a guess though.

But then charge you more to change your policy

 

[mikemillar]

Americans pay much higher insurance than us I think - I've heard a couple of people say they pay the same in insurance per month as their car loan payments.
average

Maybe we should count ourselves lucky then.

 

[Daverh]

Maybe we should count ourselves lucky then.

But, doesn't American insurance cover the car for any driver, not the driver+car combination as it does in the UK?

 

[ItsNotAboutTheMoney]

Americans pay much higher insurance than us I think - I've heard a couple of people say they pay the same in insurance per month as their car loan payments.

Average Cost of Car Insurance (2020)

The cheapest state (Maine) average is $1,200 - twice the UK average. most expensive state (Michigan) average is $8,700 - 15 x the UK average

That number for Michigan full insurance cost is way too high. They're probably basing it on what they can query.
Other sites report $2,300 to $3,000.

Main differences would be that drivers in the USA drive more miles, start driving younger, and the medical cost of injury is high.

Maine is presumably low because we have low population and traffic density, large parking spaces, and a low crime rate. Low traffic density can help both avoid collisions directly through better spacing, and because it's less likely to produce an aggressive driving culture.

Michigan has no-fault insurance, some high minimum insurance requirements and a relatively high estimated rate of insurance fraud.

 

[Mark_T]

But, doesn't American insurance cover the car for any driver, not the driver+car combination as it does in the UK?

Yes, in general insurance there is for the car, not specific to named drivers.

 

[Battpower]

I lived in San Diego for some years. Still have a Lotus insured over there. I think cover costs are same or lower, but I suspect heavily weighted by claims history, credit score and zip code.

Generally in my experience, way fairer over there. Pay for what you use. Easy to phone and take car cover level downsay if you are not driving, then reapply when you are ready. My insurer strictly pro-rated refunds to the day and no admin fee that I saw in 15 years.

Discount for multiple cars. Have to name any household members of driving age and exclude them from driving or pay extra. Cover levels seem different and may be as little as 25 or 50k public liability cover so although no personal experience, I was always concerned about under-insurance in the event of a serious accident.

Also some states allow 'self insurance' again based on fairly low coverage. Very different scene from UK.

 

[MrBadger]

I must admit, I'm surprised - I would have thought that they would have wanted to offset other claims

BBC News - Coronavirus: Insurer to give £25 refunds as cars and vans sit idle

 

[Glasgowwhite]

I had an email from Admiral today. We are getting £25 back.

 

[Battpower]

I just got an unsolicited refund of premium from my car insurance in California. Nothing yet from any of my UK insurers.

 

[DaddyCool]

I updated my details from driveway to garaged (cleared space over 2 weekends) no difference and no refund offered (LV) they did mention they'd been inundated with domestic DIY claims - mostly spilt tins of paint

 

[Russinating]

I'm really surprised too but it's a great move by Admiral. Everyone else has to follow suit now.

Funnily enough my OH is with Admiral and the discount is ~14% of her policy, but she still uses her car as much as before, if not more (NHS).

 

[MrBadger]

I updated my details from driveway to garaged (cleared space over 2 weekends) no difference and no refund offered (LV)

Oddly, not Model 3, it was cheaper to insure my car as being on the drive rather than being in the garage. Also means that on occasion, I can leave the car on the drive.

 

[KennethS]

Our Tesla is with LV, but we have our son's car with Admiral and got the notice this morning of the £25 refund. He is a relatively new driver, so it's a very small percentage of the annual premium but still a welcome gesture!

 

[bitmanEV]

Oddly, not Model 3, it was cheaper to insure my car as being on the drive rather than being in the garage. Also means that on occasion, I can leave the car on the drive.

Same here and when I asked them why the answer was; "That's up to the underwriters"... Me thinks sure...