Car Insurance firm Hastings says they are supporting drivers through coronavirus
Car insurance specialist Hastings have said they did not intend to pass extra costs to motorists for the time being. However, there are concerns motor insurers have taken premium money to insure “non-existent risks”.
- This upgrade could see car insurance costs rise
A journalist has claimed Hastings says the lack of accident claims was offset by repairs while other social media users have complained about the company’s poor service amid the ongoing crisis.
In a Tweet, Jim Armitage said: “Hastings Insurance today claimed the lack of car accident claims during lockdown was offset by the higher costs of repairs.
“Er, what repairs? Motor insurers must give covid refunds. While none of us are allowed to drive they have taken our money to insure non-existent risks.”
In a statement sent to Express.co.uk, Hastings denied any loss would be passed onto motorists.
However, the group did not rule out the possibility of a future car insurance price increase after the lockdown is lifted.
Hastings also warned claims costs may increase after the coronavirus pandemic comes to an end.
A spokesperson told Express.co.uk: “We are investing significantly in supporting our colleagues, customers and communities at this time and do not intend to pass on these costs to customers.
“It is still too early for us to assess the full impact of COVID-19, taking account of the possibility of an increase in driving once the lockdown ends, and potentially higher claims costs due to repair network challenges or lack of availability of parts.”
Parents can invalidate car insurance with one error [ANALYSIS]
Panic buying can invalidate car insurance [INSIGHT]
Millions of car insurance policies at risk for this reason [ADVICE]
Twitter users have called for the government to stop up and force the industry to comply with handing out refunds and discounts for motorists.
Another social media user posted on twitter how she was warned her policy could be cancelled if she could not pay due to a lack of funds.
The user said: “Big up Hastings insurance for basically telling me ‘pay it in 7 days or cancel your car insurance’ when am crying down phone that I can’t afford it.” (sic)
In a statement to Express.co.uk, Hastings said: “Any overpaid premiums will be refunded as appropriate and the cancellation fee will be waived.
- Car insurance ‘still valid’ through MOT extension
“We are also supporting customers with financial difficulties including waiving fees or helping with alternative payment plans.”
Hastings have also claimed motorists had the option to reduce their level of cover or their class of use.
The allegations come just weeks after the Association of British Insurers (ABI) and the Financial Conduct Authority (FCA) urged insurance companies to treat customers fairly.
The FCA said motorists’ ability to claim for a policy should not be affected by the coronavirus and urged companies to be clear and not misleading.
Last week, insurance experts ByMiles found car insurance firms could make £1billion by not offering refunds and discounts amid the crisis.
Insurers in the United States have already offered a series of benefits to motorists stuck at home.
US insurance firm Allstate has offered motorists a 15 percent discount on car insurance premiums over the next two months and put a special payment plan into place.
The savings come after the Consumer Federation of America and the Center for Economic Justice wrote to companies in March urging them to offer some money back.
Source: Read Full Article