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The COVID-19 pandemic has had a profound impact on virtually every aspect of our lives. From our jobs, to school, to social lives and beyond, no area of life has been immune. One area in which we have seen significant and ongoing changes has been auto insurance. Here, we will explore some of the key ways that the coronavirus has impacted auto insurance in the US.
One of the most immediate impacts of the pandemic on auto insurance came in the form of temporary discounts and rebates offered by many insurers. With so many people staying at home and driving less frequently, insurance companies recognized an opportunity to offer some relief to their customers. For example, many insurers offered pandemic-related discounts ranging from 10-20% of premium costs for the months of April, May, and June in 2020.
Another way in which the pandemic has impacted auto insurance is by changing what insurers perceive as risk factors. Prior to the pandemic, commuting to work, school or other activities was a significant factor used to determine insurance premiums. However, with so many people now working from home, it’s no longer a major indicator of risk level. Instead, insurers are paying more attention to the frequency and length of road trips.
Lastly, it’s important to note that the pandemic has also impacted the claims process itself. For example, while many companies quickly adopted virtual claims processing to respect social distancing requirements, there are still some instances where an in-person inspection is necessary. However, with so many people hesitant to have anyone come to their homes, many insurers have started offering contactless inspections and repair services to limit exposure for customers.
All in all, the COVID-19 pandemic has had a significant impact on auto insurance in the US, from how premiums are calculated to the ways in which claims are processed. If you’re wondering how the pandemic has impacted your auto insurance specifically, your best bet is to reach out to your insurance provider directly. Many providers are offering a high level of customer support and are happy to answer any questions you may have as we all navigate through these uncertain times together.
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