Following news that Admiral will be refunding £25 to customers whose vehicles stand idle during Covid-19, other insurers are being put under pressure to follow suit.


The £25 refund will be given to 4.4 million Admiral customers by the end of May. Anyone with an active insurance policy on April 20 will receive the money.


Admiral says that because people are driving less, they are paying out fewer claims - and can, therefore, pass on the savings to its customers.


Some other insurers have offered deferment of payments to customers - as with mortgage and utility providers - but Admiral is believed to be the first to offer a direct refund.


However, for some younger drivers viewed as higher risk, the £25 payment will not make a big difference to their annual premium, sparking criticism from some quarters.


Cristina Nestares, chief executive of UK insurance at Admiral, said: "This is an unprecedented time when people across the country are driving significantly less than before the lockdown, and we expect this to lead to a fall in the number of claims we are seeing.


"We want to give the money we would have used to pay these claims back to our loyal customers in this difficult time."


Consumer organisations have urged other insurers to follow Admiral's lead, although the Association of British Insurers (ABI) said the issue was for individual firms to decide.


An ABI spokesman pointed out that vehicles must be insured by law, even if they were used infrequently for essential trips - such as to the supermarket.


Car usage under lockdown: what’s allowed?

Under the UK government’s lockdown measures, cars can only be used for essential journeys - such as to buy groceries and to seek medical care. Using your car to park up somewhere to exercise may be considered reasonable, but it might be better to stay local and access exercise areas on foot.