Coronavirus Crisis - Do Fewer Injury Claims mean Insurance Refunds are on the way? Posted Apr 07, 2020. What Impact will the Covid19 Crisis have on Insurance Premiums in the UK? The COVID 19 coronavirus pandemic continues to affect all aspects of life in pretty much every country globally, the current lockdown restrictions that UK citizens are living with are likely to have a positive impact on the number of people injured in road traffic accidents. Restrictions on travel for necessary journeys only, combined with a large number of furloughed workers and staff getting used to working from home where they can has seen a significant reduction in the number of journey miles by motorists. With fewer journeys means fewer accidents and fewer personal injury claims, what impact might this have on insurance premiums in the UK? Premium Refunds One major insurance company in the USA is already providing car insurance premium refunds to many of its policyholders. Allstate Insurance, the countries 4th largest car insurance company with annual revenue in excess of $39bn, has said that car mileages are down by around 40% and has pledged to refund almost $600m / £490m worth of premiums. Allstate intend to provide 100% premium refunds to drivers who find themselves in a fully locked down, quarantine situation, with most other policyholders receiving a 15% discount on premiums due in April and May. The discounts affect over 18m policyholders, many of whom are starting to struggle financially due to the pandemic. Following Allstate’s lead, US insurer American Family Mutual will also be refunding around $200m of car insurance premiums. A spokesperson for the Fortune 500 insurer which has revenues exceeding $10bn per year said: “(Our policyholders) are driving less and experiencing fewer claims. Because of these results, they deserve premium relief” With US insurers taking the lead, the spotlight may now turn to UK insurers, with many of them coming under pressure to provide premium refunds for motorists due to similar big reductions in journeys over the past few months. Bakers Solicitors – specialists in running and winning RTA claims At Bakers we pride ourselves on our experience in representing claimants who have been injured through no fault of their own, and helping them to receive compensation that they are properly entitled to. Our professional, friendly team will give you an honest, free and ‘plain English’ appraisal of your claim and we love delighting our clients when they receive injury compensation they deserve. If you would like us to handle your road traffic accident compensation claim, you can contact us online or by phone on 01252 744600.