Orkney and Shetland MP, Alistair Carmichael, has called for action to be taken on motor insurance companies so that customers are repaid some or, where appropriate, all premiums. Mr Carmichael joined a cross-party letter to the Treasury, initiated by Lib Dem MP Jamie Stone and signed by 27 MPs from 7 political parties, in response to the 50% drop in insurance claims and 75% decrease in driving during lockdown. Insurance companies are set to make a £1 billion profit from motorists who cannot drive at the moment. The letter also acknowledges that insurance companies would not make a loss from this necessary and temporary adjustment.
Mr Carmichael said:
“I am glad to back this campaign, which could have a noticeable impact for people in rural constituencies in particular, where public transport is limited and cars represent a significant living cost.
“People are rightly following health advice and staying home. With vehicles resting idle and insurance claims cut in half it is only fair that insurers think about giving something back and that the Chancellor encourage this policy.”