The Liberal Democrats are leading a cross-party call seeking a rebate for motorists from insurance companies, who are set to make significant profits as the number of vehicles on the road - and subsequent number of insurance claims - falls dramatically due to the Covid-19 crisis.
Citing the "direct correlation between the drop in claims, driving activity during lockdown and insurance company profits", Liberal Democrat MP Jamie Stone and other MPs are seeking the Chancellor's support in ensuring that insurance companies refund part of customers' premiums, rather than dishing out dividends to shareholders.
Liberal Democrat MP Jamie Stone said:
"Meeting the COVID-19 threat has meant changing our lives beyond recognition. One of the most dramatic impacts has been that millions of people are using their cars much, much less - 75% less to be precise.
"The motor insurance industry is set to make vast profits as the number of claims plummets. I am delighted that [South Wales-based] Admiral are now saying that they will offer partial customer refunds. However, many are still failing to reward the trust and loyalty of their customers. In fact, we have seen payouts to shareholders to the tune of millions rather than refunds to policyholders unable to use their vehicles as normal.
"Myself and colleagues across the political spectrum are therefore urging the Government to take steps to ensure that, rather than profiting from the pandemic, all motor insurance companies play a part in supporting the millions of households in financial crisis as a result of COVID-19, and refund a percentage of people's annual premiums."