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Coronavirus: With Americans hardly driving, should insurers give bigger discounts? – USA TODAY

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Aimee Picchi, Special to USA TODAY
Published 6:04 a.m. ET May 23, 2020 | Updated 7:09 a.m. ET May 23, 2020

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Drivers should get even bigger car insurance discounts, consumer advocates argue, citing the drop of miles driven and accident claims during the coronavirus pandemic.

While auto insurers are giving customers average premium refunds of about 15% these drivers are owned much more —twice as much — advocates argue. 

A 30% discount would, in fact, reflect a roughly 50% decline in miles driven and accident claims during the crisis while tempered by some higher insurer costs, such as a likely rise in unpaid policies, says Birny Birnbaum, an economist and executive director of Center for Economic Justice, which analyzed pandemic driving and claims in a May study. Given the change in driving patterns, auto insurers’ rates “became excessive overnight,” Birnbaum adds.

The pandemic has upended daily patterns for the nation’s more than 220 million licensed drivers. For many, the typical commute of 55 minutes behind the wheel has disappeared as they worked from home. That’s prompted some consumers to hope for a price break from their insurers. Given that…



Read More: https://www.usatoday.com/story/money/cars/2020/05/23/coronavirus-less-driving-should-insurers-give-bigger-discounts/5247468002/

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Source: https://www.usatoday.com/story/money/cars/2020/05/23/coronavirus-less-driving-should-insurers-give-bigger-discounts/5247468002/

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