LV= offers lockdown car insurance refund - but there’s a catch
LV= insurance is offering its motor policy customers a refund of up to £50 due to the coronavirus outbreak.
The insurer is only the second UK insurer to offer cash back to customers affected by lockdown, following Admiral, which is offering £25 per vehicle back to customers.
However, unlike Admiral, which is automatically refunding the same amount to each customer, LV= customers have to apply for the refund and will get between £20 and £50 depending on their circumstances.
The insurer has set aside £30 million, which it expects to save thanks to fewer claims being made during lockdown.
Do you qualify for the refund?
The offer applies to anyone with a car or motorbike policy with LV= who meets its definition of "struggling financially".
To meet its criteria you must either:
Have been furloughed due to coronavirus (COVID-19) and have not yet received the 80 per cent payment scheme from your employer
Be self-employed and unable to work due to coronavirus (COVID-19), but haven’t received the 80 per cent payment scheme from the Government yet
Have been made unemployed at any point after March 1, 2020 due to coronavirus (COVID-19)
How to claim
If you fall into one of these categories, you are eligible to claim either a cash grant or a partial refund on your premium. The refund will not be automatically applied and to claim you need to contact the insurer on 0800 085 5608.
The amount you get will depend on your overall premium, with most people expected to get between £20 and £50 back. Full details can be found on the LV= website.
Steve Treloar, chief executive of LV= GI, said: "Right now, there are millions of families across the UK who are facing unforeseen pressures on their finances as a result of coronavirus.
"So, we believe it’s vital and the right thing to do to concentrate the additional financial support we can offer on those who are really struggling."
UK insurers have been accused of withholding up to £1 billion of savings from customers during lockdown, as quieter roads lead to fewer claims. The Financial Conduct Authority has also recently called on all insurers to consider refunds or premium reductions in the wake of the coronavirus. It wants insurers to make changes to ensure they are offering “product value” in a period where drivers are using their cars far less.