Car insurance experts By Miles have attacked three of the leading firms for failing to give money back to customers as many struggle through financial hardship. Direct Line, Hastings and Aviva were called out for not offering money to costumes despite their popularity in the market.
By Miles CEO, James Blackham said the big firms should be doing more to help customers through difficulties.
Speaking to Express.co.uk, he said: “Really the big car insurance, you can say with Admiral but what about Direct Line, what about Hastings Direct, what about Aviva.
“These are really big, pure car insurers in many of those cases, where are their refunds.”
He added: “I do think it is better for car insurers to be proactive in what they are doing than it is to be reactive and being sort of doing it as they are forced to.”
Hastings are also offering a waive on cancellation fees for those looking to apply for a Statutory Off-Road Notification (SORN) and stop driving completely.
In a statement to Express.co.uk, Hastings conformed further price reductions may be considered depending on the length of the lockdown.
They said: “ Depending on the length of the lockdown and its short and medium term impact on the number of accidents, we will consider further price reductions for customers over time.“
Direct Line says motorists who expect their mileage to reduce by over 1,000 miles could apply for some money back.
However, under new guidelines provided by the Financial Conduct Authority (FCA), firms have been urged to provide most of this anyway.
The new measures from the FCA require insurers to reassess the risk profile of customers and change their cover to an agreement which would best suit.
This could involve pushing customers who are on fully comprehensive policies to third party fire and theft agreements to save money.
Cancellation fees and costs associated with updating policies should also be waived by firms under the guidelines.
The FCA has also told firms to offer payment deferrals to customers from Monday with holidays lasting between one and three months.
However, firms can still offer longer extensions if they believe it would be in the customer’s interests.
The guidelines have come into place to ensure motorists are not at risk of losing their car insurance agreements through a simple lack of funds.
So far, only two firms have offered proper car insurance refunds to motorists as they pass savings made due to a lower number of claims back to motorists.
Admiral are offering all motorists a £25 refund in a total package worth £110million or around a month’s income from car insurance premiums.
LV are making between £20 and £50 available to some customers who apply for a financial hardship payment under their Green Hearts initiative.
Their scheme opens up discounts for motorists in dire financial need but means money is not available to all their customers.
Aviva, Direct Line and Hastings have been contacted by Express.co.uk to see whether refunds could soon be offered to customers.
Published at Sat, 16 May 2020 05:01:00 +0000