Following pressure from the government, businesses, and the public and reflecting the growing disquiet that the insurance industry has been very slow in its response to the collapse of motor claims during the Covid-19 lockdown, most insurers have finally agreed to make token refunds or offer discounts on premiums.
Aviva and Liberty it seems however have not signed up to the proposed refunds or discounts.
For those that have agreed to give something back what is offered is very small and of little assistance to those struggling through this crisis.
Allianz for instance are offering refunds of €30 on premiums which is insulting really when one considers that the average cost of insurance rose by 42% last year at a time when the cost of insurance claims had come down and insurers profits were soaring. While the rebates are welcome the sums proposed represent no more than 3% of the cost of the average motor policy. Given the crisis has lasted 6 weeks at this stage and is expected to continue for some time one would have expected discounts and refunds of at least 15%-20% or a sum equal to the value of 2 months’ insurance cover.
What we can all expect though, is that once we eventually get back into our cars in greater numbers and the inevitable accidents occur, insurers will start complaining and use this as an excuse to increase premiums again across the board.