US auto insurance companies are making billions more in profit each month as Americans stay off the roads during the coronavirus outbreak.
As the virus continues to spread throughout the US, far beyond the hotspots of New York, California, and Washington, most of the country has suspended travel plans and is largely staying indoors. Many people are working from home and not commuting. Others have lost their jobs altogether.
All this means that Americans are driving fewer miles. Fewer cars on the road means fewer accidents. Fewer accidents means fewer claims. In China, where the coronavirus pandemic is further along than it is in the US, auto insurers have already reported a steep decline in payouts.
According to a letter sent to state insurance commissioners earlier this month by the Consumer Federation of America (CFA) and the Center for Economic Justice (CEJ), two nonprofits that advocate on behalf of consumers, the reduced traffic translates into an estimated $50 more per month, per auto policy, for insurance companies.
It may not sound like much until you consider the fact that there are 268 million cars in the US. And although not every car on the road is insured, it still…
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