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Research Outline
Prepared for Nicole L. | Delivered April 4, 2020
COVID-19 - Auto Insurance
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Goals
Provide a report on how car insurance consumer behavior including shopping for insurance may be impacted in coming months, with a focus on trends and behaviors after June, in order to help clients understand future business projects.
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Early Findings
Americans are driving increasingly less due to stay-at-home mandates, but most have still maintained their existing insurance policies, leading to
billions in profit
for auto insurance companies.
Unemployment rates are associated with fewer accidents as well, so it is noted that consumers will
likely file fewer claims
even after stay-at-home mandates are loosened.
However,
consumer advocacy groups
are starting to pressure auto insurance companies to pass these profits on to consumers by refunding or reducing premiums for those driving less
a
s
related to COVID.
Consumers may be forced to drop their insurance
due to economic hardship,
so they may be an incline in premiums or fees to get it started again in the future as the economy improves and stay-at-home mandates are reduced.
Rates for those who have let coverage lapse typically are
7-12% more
.
It's also noted that insurance rates may drop in 2021 if fewer car crashes are reported in 2020, which may lead to
consumers seeking more competitive rates
overall.
Consumers are also projected to expect insurance companies to
address any gaps in service
revealed during the crisis, such as lack of low-mileage rate offerings.
Auto insurance demands may increase for those who are working within the
home delivery space,
as people continue to rely on these services after stay-at-home mandates are reduced.
However, if remote work trends stabilize, some at-home workers will be driving less and
needing less insurance coverage
as a result.
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