Admiral has announced that it will give customers a £25 refund due to the disruption caused by the coronavirus pandemic.

It is the first major UK motor insurer to take the decision to offer the refund after confirming that it would be returning £110m to its policyholders.

This will mean £25 for every car and van that the firm has covered as of 20 April, which equates to some 4.4 million vehicles.

According to reports, the money will be sent directly to customers’ accounts by the end of May.

Announcing the move, Cristina Nestares, the chief executive of UK insurance at Admiral, said that they were using the money they would have spent on claims to pay customers back.

She 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.

“We have also already reflected this change in driving behaviour in our pricing for customers and will continue to do so.”

But this isn’t the only way Admiral is pledging to help motorists.

The insurance giant has also promised a further £80m to help reduce its prices and renewal quotes, in particular for younger drivers and those who may have larger premiums.

It has also pledged to use some of the money to support NHS staff, with £4m of Covid-19 support being used in south Wales, which is where the company is based.

While in another move to support the work of NHS staff during the pandemic, Admiral has also taken the decision to waive excess fees for emergency workers and offered them free courtesy vehicles if they are forced off the road following an accident.

And though it is the first UK company to offer the refund, Admiral has been joined by the likes of AXA, the AA, and Aviva in offering payment holidays for customers.

Last month, Hertz offered £1 car rentals to all emergency staff so that they able to make it to work throughout the pandemic.

Speaking at the time, a spokesperson for the firm said: “We’re here for you, because you’re there for us.

“Thank you for all you do from the bottom of our heart.”