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.
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 as 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.