Pressure to offer car insurance rebates is growing

Another week of lockdown, another varied week of reporting of the latest driver news and updates across the media. Most interestingly, we’ve seen a real variance between news stories that are shouting about how people not driving can get their car insurance premiums reduced, and those stating that you absolutely can’t.

For example, the trade journal Insurance Business is reporting some small, but marked, rise on the year on year car insurance premium costs, while The Times and Forbes are both suggesting that insurers are refusing to reduce costs or issue refunds to car drivers who are hit by the lockdown and that pressure needed to be put on them to offer drivers a discount on their annual insurance policies. 

And there is a logic behind that. As there are fewer cars on the road (up to 60% less in some parts of the country), there are, inevitably, fewer accidents and by default, fewer insurance claims being made. With fewer costs to cover, it makes sense that insurers should, at a time of hardship for many of us, be passing on savings to customers, and not making the bumper profits that they are currently enjoying. 

Drivers throughout Europe and North America are all enjoying these discounts on their policies, but the UK is not. We can only hope that this changes, or car insurance companies may see a huge uproar by the public, who already pay some of the highest prices for car insurance in the world. While some insurers are offering a payment holiday while people get through the coronavirus crisis, it’s seen as little by way of true help and assistance when people need it most. 

We can only hope that someone mobilises the voices of complaint and does something about it. 

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