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Coronavirus: Insurer to give £25 back to drivers as claims fall during the lockdown

Insurance company Admiral is handing back £25 each to millions of car and van insurance customers as claims fall during the lockdown – putting pressure on rivals to follow suit.

The refunds, totalling £110m, are to be paid out by the end of May and will go to each of the 4.4 million vehicle policies covered at 20 April.

Admiral said it was able to give the cash back to customers as there were fewer drivers on the road since restrictions designed to stop the spread of COVID-19 were imposed.

The company also pledged a further £80m towards lowering prices for cover to reflect the drop in claims, as well as further initiatives.

That includes waiving motoring claim excess fees for NHS or emergency service workers.

The £190m total committed was equivalent to a third of its 2019 profits.

Unlike some other insurers, Admiral has not scrapped dividends in the face of the coronavirus crisis.

Each of the 4.4 million vehicles covered by the firm’s policies will receive the rebate by the end of May, the company said.