Articles - Call for UK insurers to follow US and refund motorists

Pay-by-miles car insurer By Miles is calling for UK insurers to do the same – as many drivers are paying for services they are not using during a financially uncertain time.

 By Miles’ customer index data* shows a 69% decrease in daily average miles driven nationwide since lockdown, or a 72% decrease daily miles driven within London due to the Government’s advice to only make essential journeys. *accurate 05.04.20
 James Blackham, Founder and CEO of By Miles: People in the UK are currently living through an unprecedented moment in history and are having to adapt to the Government’s advice to “stay at home”. Everyone is forced to make changes in this situation - and that should include car insurers.

 We’re challenging traditional car insurers to recalculate their rates and make insurance fair under these extraordinary circumstances.

 As people are driving far fewer miles while in lockdown, the number of insurance claims due to accidents also decreases - and those savings should be passed on to the public.

 At the moment, this situation is only benefitting car insurers who stand to make in excess of £1,000,000,000 from this reduction in claims and it’s important that drivers know this.

 Members of the Association of British Insurers (ABI) have pledged support for people affected by the COVID-19 pandemic, but for as long as traditional insurers continue to charge a fixed amount regardless of how many miles someone drives - motorists will continue to be overcharged. Policyholders must be able to request a premium reduction or extra months added onto their policy - anything else isn’t treating customers fairly.

 It’s hitting young drivers particularly hard, who may be paying car insurance premiums as high as £200 a month (including interest) while staying at home.

 If you’re not using your car as much as usual during this health crisis, then it’s only fair that you should pay less for your car insurance.

 We’re waiving our cancellation fee for new policies sold this month to provide more motorists the opportunity to try our pay-by-mile service and see how it works for them.

 Once the lockdown restrictions are lifted, if customers who have been with us for a minimum of three months need to change policy as their circumstances do - they won’t be charged to cancel the policy. We'll also refund any days or months of their policy that they haven't used.

 We know it’s only a small gesture, but we hope it can help some people bring their monthly outgoings down in a time when making savings is more important than ever.

Back to Index

Similar News to this Story

Will general election call shake up pensions policy agenda
With the Prime Minister calling for a summer election, LCP Partner David Fairs looks at how this could affect the pensions policy agenda. What does th
Risk Transfer do more insurers mean more capacity
Nikhil Patel takes an in-depth look at current trends in the risk transfer market, including the implications of record-breaking demand and how new en
Aiming for calm seas in our market reforms
The size and scale of the UK financial sector is worth reflecting on. It employs more than 2.5 million people and produced £278bn of economic output,

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.