SAVANNAH, GA- Wsav.com writes that the outbreak of COVID-19 and the resulting stay-at-home orders, far fewer drivers have been on the road at any given time. Most people cut down on the amount of driving they are doing, and the rate of car crashes also dropped. In April, car insurance companies reduced their rates as their normal costs were not matching those of the quarantine.
The moves taken by those companies were lauded by the Consumer Federation of America (CFA), but now that many of those orders are lifted, it remains unclear what will happen to insurance rates.
Many companies appear to be returning to the rates they charged prior to COVID-19, but those rates may still not reflect the amount of driving people are doing. The roads still have about 30 percent fewer cars on them.
A few of the larger companies are stating that they will offer continuing discounts. A survey of companies found that five are offering some rate reduction to their customers, but that 195 companies are not.
Consumer advocate groups are urging customers to contact their insurers to ask what their policy is and whether they will be reducing their rates. Some experts believe that driving patterns will not return to their normal state for quite some time. Many individuals who started working from home during the pandemic may continue to do so moving forward and therefore cut down on their commute related mileage.
In the upcoming months, keeping track of driving patterns will be crucial for determining fair auto insurance rates throughout the country. Failing to reflect on reality could result in many insurance companies collecting a windfall profit resulting from the coronavirus pandemic lockdowns.
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