Auto Insurance Policy Relief During COVID-19.

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.

Continue reading here: https://freewaylaw.com/car-insurance-policy-during-covid-19/

Originally published at https://freewaylaw.com on April 25, 2020.