How is Covid-19 affecting automobile insurance?
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Here is a transcript of the video:
Covid-19 affected businesses all over the United States as well as the world. Of those businesses, the auto insurance industry was one industry that was hit the hardest. With stay-in-place orders all around the States and businesses moving to remote work, vehicles everywhere were grounded thus lowering the number of claims being filed. This has resulted in a huge increase in auto insurance companies’ profits because the fewer claims customers turn in the more money insurance companies make.
Now major car insurance companies across the US are offering a helping hand in these times when many people are sheltering and driving less. Insurance premiums are a significant cost for many families and it stings just a bit more right now because many people are not leaving their homes except for essentials.
For example, Geico and Progressive reduced many insureds renewal payment to which has resulted in huge savings for many consumers, other companies sent the extra premium back to the insured in the form of checks. Some companies even set in place protections for those who lost their jobs and were unable to pay on their auto insurance. Some of these insurance companies are requiring the customer to pay this premium back though. Which can cause a large amount due all at once. So if your insurance company is offering to delay payments due be sure to get details from them on how and if they are going to require you to pay it back.
It has been almost a year from when the pandemic first occurred and although it does seem that there is a light at the end of the tunnel there are still many Americans who are trying to make it financially. Traffic congestion is starting to pick up again in many places with many people back on the road in many states. We will have to wait and see if the discounts auto insurance carriers gave in 2020 will continue in 2021. Here at Cheapest Auto Insurance, we know that it’s important to stay covered and we believe that it shouldn’t cost you a fortune. Give us a call today or get a quote online to see how we can help you save big today!