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Boglet

Car insurance companies giving partial refunds

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Posted (edited)

My wife received an email from her Elephant car insurance as follows:

Quote

With fewer cars on the roads during the UK lockdown, we’re seeing a reduction in the number of claims coming in. We want to give the money we would’ve used to pay these claims back to our loyal customers in this difficult time.

If your car or van is one of the 4.4 million vehicles insured with us on 20 April 2020, you’ll get an automatic £25 refund per vehicle.

You don’t need to contact us or do anything at all at this stage, we’ll be in touch between now and the end of May with more details about the refund.

Apparently Admiral are doing the same, not sure about others.

Now, I understand that these car insurance companies will be flush right now, for the reasons they state.

What I don't understand is why they wouldn't just pocket the cash, bonuses/trebles all round and keep quiet. Insurance companies aren't known for doling out refunds out of the goodness of their hearts.

Is it because £25 per customer is way less than the extra they get to keep and will stop people pointing any of this out and making a fuss?

Edited by Boglet

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4 minutes ago, Boglet said:

My wife received an email from her Elephant car insurance as follows:

Apparently Admiral are doing the same, not sure about others.

Now, I understand that these car insurance companies will be flush right now, for the reasons they state.

What I don't understand is why they wouldn't just pocket the cash, bonuses/trebles all round and keep quiet. Insurance companies aren't known for doling out refunds out of the goodness of their hearts.

Is it because £25 per customer is way less than the extra they get to keep and will stop people pointing any of this out and making a fuss?

Also, why £25 per customer - why not a % of premium?

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3 minutes ago, Wight Flight said:

Also, why £25 per customer - why not a % of premium?

And is it at end of premium? 
Cos It sounds like they want to avoid you turning round and arging you should only pay half.

Minimum miles you can add to policy normally is 2000-3000 so I imagine lots of people are normally in for 10-20k maybe more (I really have no idea how many miles people would normally drive)

and if you're not commuting your insurance should be less.

What has Martin Lewis got to say on the matter?

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Elephant / Admiral / Sheila's Wheels / that one for younger drivers that I've forgot the name of, are all the same company FWIW.

Interesting fact: They own confused.com

Edit: remembered: Bell!

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Posted (edited)
3 minutes ago, Ash4781b said:

They must be making a lot of money to this. Next year premiums to rise due to massive rise in Crime? 

Not sure. The chances of having a claim on car insurance are almost as low as home insurance, I can't remember the statistic but it's massively profitable anyway. Customer pays £500 for insurance, car insurer pays the underwriter £250 and pockets the rest. It's why most of them are just marketing companies when you cut away the crap. And white labels like Post Office insurance have zero to do with Post Office, it's just a branding exercise.

If they have to start refunding customers by law, which isn't beyond the realms of possibility, then it's going to be a shitshow for them. Offering £25 peacemeal is a stupid move IMO, it just gives credence to those demanding -50% back (which I agree with btw, but I'm speaking from the insurer's POV).

Edited by spunko

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53 minutes ago, spunko said:

Elephant / Admiral / Sheila's Wheels / that one for younger drivers that I've forgot the name of, are all the same company FWIW.

Interesting fact: They own confused.com

Edit: remembered: Bell!

What a coincidence.

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Posted (edited)

fag packet calculation:

Average UK car insurance premium is £500  (according to google)

Time spent off the road (ish)..  1/5th of a year.

Money saved..  £100.

25% for you,   75% for them.  Or,  to give them the benefit of the doubt,  after costs it's probably more like 50:50.

Edited by Libspero

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Left Admiral on the ......19th April :wanker:

When I phoned to cancel they queried why I was leaving and what the price difference was (£300), they said I should always call as they might have been able to beat their online price :wanker:

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28 minutes ago, choochoo said:

Left Admiral on the ......19th April :wanker:

When I phoned to cancel they queried why I was leaving and what the price difference was (£300), they said I should always call as they might have been able to beat their online price :wanker:

They make the price up, to see what they can get away with, like supermarket wine.

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1 hour ago, MrPin said:

They make the price up, to see what they can get away with, like supermarket wine.

Ash’s wine shopping adventure.

1.Is it in a wine bottle? Yes go to 2

2.Is it red or is it white? (Don’t care)

3.Does it cost less than £7 a bottle? Yes go to 4

4.Is the shelf fully stocked? (If no buy)

 

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9 minutes ago, Ash4781b said:

Ash’s wine shopping adventure.

1.Is it in a wine bottle? Yes go to 2

2.Is it red or is it white? (Don’t care)

3.Does it cost less than £7 a bottle? Yes go to 4

4.Is the shelf fully stocked? (If no buy)

 

Ye gods. My homebrew costs about 10-20 pence per bottle to make!

Looks like we got ourselves one of those fancy big spenders on here! :D

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22 minutes ago, Austin Allegro said:

Ye gods. My homebrew costs about 10-20 pence per bottle to make!

Looks like we got ourselves one of those fancy big spenders on here! :D

Wow that’s cheap. I have some home brewed beer in bottles that is wine strength. I forgot to liquor it back down it’s like special brew! 

I keep meaning to try wine homebrew....

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Posted (edited)
7 minutes ago, Ash4781b said:

Wow that’s cheap. I have some home brewed beer in bottles that is wine strength. I forgot to liquor it back down it’s like special brew! 

I keep meaning to try wine homebrew....

It requires foraged or home grown materials, so the only real cost is the sugar. I usually reckon on about 750g per 4.5 litre demijohn. That's roughly 50p for sugar (cost is about 70p a kilo). 4.5l (one gallon) makes about 5-6 bottles of wine (depending on how much sediment there is). Say 5 bottles, that's 10p a bottle. Yeast and nutrient are so cheap I don't count them.

This time of year you can get nettles easily, then later things like blackberries or elderberries.

If you have to buy the fruit or veg it costs a bit more.

Edited by Austin Allegro

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2 hours ago, choochoo said:

Left Admiral on the ......19th April :wanker:

When I phoned to cancel they queried why I was leaving and what the price difference was (£300), they said I should always call as they might have been able to beat their online price :wanker:

You're lucky you're with a company you can actually contact.

I'm with eSure (who say on their website they've closed their offices and have people WFH to deal with queries) and have been trying to get hold of them for days to change insured address. Phone and online chat is queued up to fuck so get bored of waiting. Tried the contact us form, they say they will get back to me within 3 days (we'll see 9_9), just to stop the auto-renew when it's due early next month so I can put a new policy through one of the comparison sites for the new address.

Maybe I should hang on the telephone for however long it takes to get through and see if they can beat their own online price. Will see if I have the patience if not heard anything from them by tomorrow.

Seems a lot of companies attempting to still operate are struggling to put up a decent online service while their offices are closed or affected by regional impact if they are say in India. esure don't offer any worthwhile changes to an existing policy online, which one would think they'd improve to provide a better service.

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12 minutes ago, BoSon said:

Seems a lot of companies attempting to still operate are struggling to put up a decent online service while their offices are closed

Four letters.

GDPR

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3 minutes ago, Wight Flight said:

Four letters.

GDPR

Surprised that's not been relaxed. esure do mention that even though their staff are WFH there is security in place to protect customer data. Yes, the protection is one can't get through!

Maybe there's a strategic time of day or week to try again. I did notice there were only something like 18 in the queue for live chat on Sunday but the number didn't go down while I was waiting (probably only a skeleton staff working) but when I tried again yesterday there were over 180 in the queue. Fuck that.

I suppose I could write to them to demand no auto-renew of my car insurance. 9_9

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22 minutes ago, BoSon said:

Surprised that's not been relaxed. esure do mention that even though their staff are WFH there is security in place to protect customer data. Yes, the protection is one can't get through!

Maybe there's a strategic time of day or week to try again. I did notice there were only something like 18 in the queue for live chat on Sunday but the number didn't go down while I was waiting (probably only a skeleton staff working) but when I tried again yesterday there were over 180 in the queue. Fuck that.

I suppose I could write to them to demand no auto-renew of my car insurance. 9_9

Or just cancel the direct debit?

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7 minutes ago, Wight Flight said:

Or just cancel the direct debit?

I think it's one of those continuous payment authorities via the card (an invisible direct debit as it doesn't appear on the list of ones I can cancel via online banking) so they can just take payment using previous card details supplied even if it's expired.

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I may be cynical but that £25 partial refund may be to disuade people sat at home likely until June from SORNing their car and cancelling their insurance. May have legs if the T&Cs say a refund is due for the unused months when cancelling.

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6 hours ago, spunko said:

Elephant / Admiral / Sheila's Wheels / that one for younger drivers that I've forgot the name of, are all the same company FWIW.

Interesting fact: They own confused.com

Edit: remembered: Bell!

Must be UK Insurance, used to be part of Direct Line (and therefore RBS back in the day), not sure if it still is though. I think Churchill is part of the same group.

When you read the smallprint most policies in the UK are underwritten by UK insurance. Or were, my knowledge may be a little out of date.

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29 minutes ago, BoSon said:

I may be cynical but that £25 partial refund may be to disuade people sat at home likely until June from SORNing their car and cancelling their insurance. May have legs if the T&Cs say a refund is due for the unused months when cancelling.

They'll have admin charges of something silly to stop you doing that.

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5 hours ago, Libspero said:

fag packet calculation:

Average UK car insurance premium is £500  (according to google)

Time spent off the road (ish)..  1/5th of a year.

Money saved..  £100.

25% for you,   75% for them.  Or,  to give them the benefit of the doubt,  after costs it's probably more like 50:50.

What about the average cost of the claims that have been avoided? The premiums must be more than the claims or they wouldn't make a profit. Some of their costs will be fixed office space etc. Maybe they have given the rebate as a percentage of the claims money saved which will be less than premiums.

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