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Evening Standard
Evening Standard
Business
Michael Bow

Direct Line offers route to cut premiums as car insurance claims plunge 70%

Motor insurer Direct Line said insurance claims for car accidents had plunged by 70% in April as it offered a route for customers to cut their monthly premiums.

Less people are driving due to stay-at-home measures, resulting in less cars on the road and fewer accidents.

The company said motor insurance claims made to the company were 70% lower in April than the same period in 2019.

Direct Line has told customers they can lower their expected weekly mileage driven on some policies because they are not driving as much. This would temporarily lower premiums.

Car drivers can also cancel foreign use.

In total the company is spending £70 million on a range of customer-help measures, including providing all NHS workers with free breakdown services.

Higher travel insurance claims will also cost it an extra £25 million if travel restrictions remain in place until the end of September.

More to follow...

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