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Car insurance: Drivers could secure a refund if mileage has been a 'lot less' in lockdown


They warn insurance providers could offer drivers a “pro-rata premium refund” if they have driven less than they were expected to. However, road users should keep an eye on any “administration fees” to ensure updating their details in the hope of a refund will not see costs rise.

Ryan Fulthorpe, car insurance spokesperson at Go Compare, said drivers should ”always be honest” when dealing with their provider.

He told Express.co.uk: “Drivers can inform insurers during their policy term if their originally quoted mileage is now going to be a lot less due to driving restrictions.

“Insurers may offer a pro-rata premium refund based on the new mileage that will be driven.

“Always be honest in these situations and under-declaring mileage could result in a rejection should you ever need to claim.

READ MORE: Drivers risk losing £500 in common car insurance scam

LV customers were eligible for a refund of between £20 and £50 if they have suffered financially as a result of the pandemic.

Meanwhile, Admiral customers were automatically given a £25 refund at the end of May last year.

The two firms joined over 20 major US car insurers who have done the same thing with many passing back billions of pounds to customers.

Some American firms have issued refunds of up to 15 and 25 percent on premiums as a result of the pandemic.

“All you have to do is call your provider, let them know how many miles you think you’re going to do.

“And then if it’s below what you agreed in the beginning there could be money back.”

Instead of offering discounts many firms allowed custonrs to ask for price freezes or payment plans. 

Many policies also extended cover which has allowed drivers to travel to a new place of work without needing a new agreement. 


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