$100 Billion in Profits Expected to go to Auto insurance Companies Due to COVID-19
Consumers Urged to Contact Insurance Companies to Request Premium Reductions; ValChoice Estimates Average Savings Could be $560 per Vehicle
ValChoice, an insurance data analytic company and consumer advocate, released a special market report titled “COVID-19 Windfall Profits Estimated at $100B for Car Insurers.” In the report, ValChoice estimates that insurance companies could realize $100 billion in windfall profits due to the change in driving habits forced by shelter-in-place mandates. This resulted in millions of vehicles that are now parked in garages and driveways, which translates into hundreds of thousands of fewer accidents and billions of dollars in claims that won’t have to be paid.
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Millions of vehicles are parked in garages and driveways as people shelter in place. Consumers deserve relief from insurance prices on these vehicles. #coronavirus #COVID19
“Auto insurance companies could receive outsized profits due to COVID-19. This is money owed consumers who are now driving far fewer miles and presenting far lower risk to their carriers. These consumers should demand refunds to improve their cash flow during these difficult economic times,” said Dan Karr, CEO and Founder of ValChoice. “Only two insurers stepped up so far. This is not nearly enough and represents only a small fraction of the cost savings people deserve.”
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While savings for individual consumers will vary depending on how much their situation has changed, ValChoice recommends that consumers contact their carrier and adjust their coverage to save money. To obtain information on how much money can be saved, consumers can run their own estimates using the ValChoice car insurance calculator.