The £1.3 Billion Holiday

Another week in the heady world of car insurance and as the world emerges from lockdown, we read with interest that all those savings that we told you insurance companies were making while we were all staying home is an even bigger amount than we had anticipated.

Yes, in the UK alone, those savings that insurance companies have pocketed amounts to a whopping £1.3 BILLION pounds. Yes, that’s right – BILLION pounds. Makes that £25 rebate that Admiral gave its customers seem like loose change, doesn’t it? Not only that, but what about all the companies who gave back diddly squat? Nice work, car insurance. 

Guidance from the FCA suggests ways for insurance companies to repay that overpayment to us, the humble punters, but as yet, of course, the insurance companies have chosen to ignore that and keep it for themselves.

Almost makes you want to take a holiday, doesn’t it?

Although if you are taking a long road journey (you know that the A303 to Cornwall is going to be worse than ever this year, right?), many of us choose to share the driving with a partner. However, if the partner in question is not a named driver on the car insurance policy, watch out – your insurance policy isn’t going to be worth the electronic paper it’s written on.

While some car insurance policies do indeed permit other people to drive the vehicle in question, often it means that a comprehensive insurance policy is reduced to nothing more than third party, fire and theft. So, if you do have an accident, you need to be sure any other driver is named on your policy to be able to make a claim in full.

Of course, if we were the insurance companies, sitting on that £1.3bn, we’d be booking a week in the Caribbean with our own private driver.

After all, they can afford it.

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