LV= is the latest insurer to fold under the pressure created by consumers expecting a motor insurance rebate as they’re not driving as much, or at all, during the lockdown.
Admiral was the first to make such a move, with a £25 refund per vehicle on its books – but LV= has taken a different approach.
Its own rebate will apply only to those it deems as financially struggling due to the following reasons:
• Customers have been made unemployed at any point since 1 March 2020.
• Customers have been furloughed but haven’t yet received money through the government’s Coronavirus Job Retention Scheme.
• Customers are self-employed and unable to work or trade because of coronavirus, and haven’t yet received money via the Self-employment Income Support Scheme.
LV= has set aside about £30m into a special assistance fund to refund those that meet its criteria.
In order to validate an application for a refund, which must be conducted over the phone with LV=, policyholders must provide evidence they fit one of the above categories.
By Miles CEO James Blackham – who has publicly called on insurers to give rebates – said he hoped the insurer planned further action to benefit all of those in lockdown.
“We hope this is just the first step, and LV= is prioritising customers who’ve experienced financial difficulties before offering refunds to all their drivers who have not been getting their money’s worth from their policy,” he added.