Who is benefitting from Covid-19?
People have to learn ways to stay ahead on the curve about their car insurance policy during COVID-19 crisis. Besides Amazon and Costco, not all companies are flourishing during the pandemic. If you are a worker in one of the essential industries, you probably enjoy the limited traffic these days. Along with the decrease in traffic comes a huge profit for the insurance companies.
How exactly are the insurance companies benefit?
According to Quartz magazine, 260 calls made to 911 regarding traffic accidents in San Francisco. That data is just for an average week since 2019. From March 17 to 23, there were just 110. This was the same in many cities across America and Los Angeles included. It is the lowest number of accidents over 7 days for the last 17 years. As the shelter-in-place continues in California, the number of car accidents remains at an all-time low. The decreasing number of claims shows that insurance companies are still taking the same payments every month but not paying out much. This creates an enormous windfall for the insurance companies. It may happen every month considering that social distancing could last for an extended period of time.
In a letter written by the Consumer Federation of America and the Center for Economic Justice, they pointed out some very alarming facts. The decrease in traffic nets roughly $50.00 per month extra, per policy. With over 268 million auto insurance policies in America, insurance companies could be receiving over $2,000,000.00 dollars per month in extra revenue.
What should companies do with car insurance policy during COVID-19?
In California, Insurance Commissioner Ricardo Lara has recently given orders to the insurance companies. “With Californians driving fewer miles and many businesses closed due to the COVID-19 crisis, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss,” said Commissioner Lara. Today’s mandatory action will put money back in people’s pockets when they need it most.
Nine insurance companies have announced some form of rebates. We recommend talking with your insurance company about the details of their rebates. Insurance companies will surely include a lot of fine prints. Here is a short version of what they are offering:
- Allstate: 15% of auto insurance premiums for April and May.
- Farmers: 25% discount on April auto insurance premiums.
- Geico: 15% discount on auto insurance premiums.
- The Hartford 15% discount on two months’ worth of premiums.
- Liberty Mutual: 15% refund on two months’ worth of premiums.
- Progressive: 20% credit on premiums paid in April and May.
- Nationwide: One-time $50 refund for each policy with Nationwide.
- State Farm: 25% automatic rebate on premiums.
- USAA: 20% rebate on two months of premiums.
At Freeway Law, we don’t think these rebates are enough. We know that due to COVID-19, insurance companies are getting more profit than what they have agreed to return due to. People who were involved in accidents should benefit from the financial windfall received by the insurance companies. People are not canceling their policies unlike other economic times before. There are fewer cars and accidents, therefore, insurance companies should be paying out larger settlements right now as well.
It is a great way to get your premium money back to the people during this pandemic. We will fight hard with every insurance adjuster assigned to your case during the Covid-19 pandemic. We will represent our clients in every matter, but we intend to fight hard especially during these times. It is good to get insurance money back in the clients’ pockets where it belongs.
What should I do with my car insurance policy during COVID-19?
- Call your insurance company and see if they are offering any policy relief beyond what may be automatically applied. Inform them that you no longer drive as you did before. Discuss to them also other facts related to your car insurance policy during Covid-19. Remember that insurance rarely hands anything out. Ask questions. Educate yourself. Seek relief!
- If you get in a car accident call Freeway Law immediately. Speak with our experienced auto car accident lawyers. There has been no better time to file a claim and to pursue your rights during these financially uncertain times than now.
Learn more about auto car accident law by reading our latest articles on our MEDIUM page.