Trade Me Insurance to make refunds

Trade Me Insurance says it will refund a portion of car insurance premiums to its customers in the light of lower vehicle use and fewer accident claims during the COVID-19 lockdown.

The company says it believes the right thing to do is pass back the benefit of lower claims costs to customers.

“We are committing to refunding a portion of premiums to all of our motor insurance customers in late May.

“We will also continue monitoring the impact of COVID-19 on claims and may make further refunds later in the year,” Trade Me says.

It says there’s “still a lot of uncertainty and we need to understand what the actual claims costs are and calculate refunds which will take some time.

“Refunds will be paid by late May and we will be in touch with customers beforehand to let them know what to expect.”

It is “still working through” how the refunds will be paid. “Once we have worked out how to get the refund to our customers, we will let them know.”

Trade Me Insurance’s announcement follows similar motor insurance refund promises by AA Insurance and Tower.