Coronavirus News: How The New Pandemic Has Changed The Auto Insurance Industry

PR Web

LOS ANGELES (PRWEB) April 29, 2020

Compare-autoinsurance.org has launched a new blog post that explains how the coronavirus outbreak has changed the car insurance industry and what are the expected consequences.

For more info and free car insurance quotes, visit https://compare-autoinsurance.org/car-insurance-guide-during-the-coronavirus-pandemic.

The coronavirus has affected the lives of everyone. The consequences of this unfortunate event are dire and no one knows exactly when it's going to end. The hardships the regular Americans have to overcome are expected to be more severe than the ones from the last financial crisis. Regarding car insurance, there are a few good news for regular Americans. Several major car insurance providers have announced that they will help their customers who are in financial trouble. In these challenging times, the car insurance industry has seen some changes:

Car insurance companies are refunding premiums during the coronavirus crisis. Since the declaration of a national emergency in the US, the number of cars on the road had fallen drastically. Many companies have pledged to give paybacks to their customers, as car accidents are decreasing with fewer drivers on the road. More than 82% of auto insurance companies like State Farm, Geico and Liberty Mutual are offering policyholders refunds and credits to save money, totaling more than $6.5 billion over the next two months, according to the Consumer Federation of America.
Numerous policyholders lost their jobs and now are seeking ways to cut off car insurance expenses. So many people's lives have been altered by the coronavirus already, and many have felt the change most significantly in their budgets. Car insurance can be a financial burden for many drivers, especially in times of crisis. Canceling car insurance completely is not a solution for drivers unless they plan not to drive the car for the whole period, which is highly unlikely. The solution is to apply to coronavirus-related plans offered by the insurers.
How to handle the current policy. Given the current coronavirus outbreak, most drivers are keeping their cars in a garage and they can be tempted to drop optional coverages like comprehensive or collision. However, drivers who still need to drive should consider that their cars could be damaged, stolen, or totaled in an accident, even if there are fewer cars on the road due to COVID-19 outbreak. Drivers who are planning on not driving at all for a long time, can put their vehicles in storage and keep only comprehensive insurance.
It is expected to have more expensive premiums in the near future. Insurance providers collect billions of dollars that are not just waiting to be paid out in claims but are also being invested. Insurance companies make real money from their investments. Unfortunately, the investment world is currently on hold and the only alternative left for insurance companies is to raise the premiums once things go back to normal.
Insurers and policyholders prefer to handle claims online. Everything is going digital in the car insurance world. instead of meeting with agents and claims adjusters, policyholders will have to contact the company via a call of a video conference. When reporting an accident, the policyholder will have to show pictures and videos that show the damage and support their claims. The company will send the evidence to some specialists, wait for results, and then contact the client and start negotiating the reimbursement's value. Since insurance representatives do no longer physically contact the policyholder, everyone has to go online and check the customer services. Naturally, there are queues forming up. Most people want to know about their premium payments and the recently introduced premium refunds. Companies are recommended to send notifications and e-mails that inform the clients what to expect.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/.

Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.