Road Warrior: With coronavirus keeping people home, insurance companies are offering a rebate

Lawyers have long had a bad rap in our culture. It was Shakespeare who wrote the line, “The first thing we do, let’s kill all the lawyers.” Personally, I prefer the American demonization of the trade -- namely, “The Devil and Daniel Webster.”

But if you were to ask me what white-collar job the Devil actually performs, I would tell you he’s an actuary. From the way I see it, there’s not much more dehumanizing than assigning a financial cost to a personal tragedy and calculating how insurance companies can still turn a profit.

So it’s with grudging respect I applaud some businesses within the car insurance industry for preparing to give back money to their customers.

Many factors go into determining your auto insurance rates including where you live, your driving history and what vehicle your driving chief among them. But the amount of driving you do is a big factor as well. And with the stay-at-home order keeping so many people off the roads, the formulas determining risk ought to be adjusted.

As a result, some auto insurance companies are offering discounts or rebates to their existing policyholders, including AAA East Central. To get the full details, you should check your insurance company’s website, but here are details on some of the larger companies.

Allstate: 15% refund for April and May premiums.

Farmers: 25% off on April premiums.

GEICO: 15% credit on six-month policies.

Liberty Mutual: 15% off premiums in April and May.

Progressive: 20% off premiums in April and May.

State Farm: 25% credit for premiums between March 20 and May 31.

Travelers: 15% credit on April and May premiums.

USAA: 20% credit for two months worth of premiums.

Some others, including Travelers, are also not charging fees or canceling coverage for late payments for at least the next few weeks. Again, follow up with your insurance company for the full details.

Now, I suspect the companies aren’t being entirely altruistic in their decisions. Some may recognize it’s a potential PR nightmare to make money hand over fist from a global crisis. Others may feel pressured to act after seeing the competition make similar moves.

Losing customers may be a real concern, too. After all, if people are ordered to stay home, they may start wondering why they’re paying insurance on a car that doesn’t leave the driveway.

While that’s a fair question, it’s probably not wise to entirely drop your insurance if you own a car. Even if it’s not on the road, it could still be stolen, vandalized or damaged. You’ll miss the protection then if you cut your policy. It may be worth adjusting your policy coverage, but that depends entirely on your personal finances, how often you drive and what your insurance company offers. It may be worth calling your insurance agent to explore.

Some historical perspective on the drop in traffic

The insurance companies can afford to offer those discounts because they’re seeing a financial windfall from the pandemic’s stay-at-home orders. Fewer cars means fewer accidents, which means fewer claims to investigate and payout.

When was the last time traffic was this low on Lehigh Valley highways? After some rough math, I estimate it’s been 48 years. Here’s my logic for what seems like a very specific answer.

I reported earlier this month that traffic counts on Lehigh Valley highways have found traffic has fallen by nearly half. A tally by the Lehigh Valley Planning Commission found that total traffic on Route 33 in Lower Nazareth Township dropped by about 48%. That figure was in line with how much traffic dropped on Interstate 78 between Easton and Route 33, too.

I haven’t seen any traffic counts for Route 22 since Gov. Tom Wolf issued the stay-at-home orders for the Lehigh Valley, but it’s not crazy to believe it would be in line with what we’re seeing on Route 33 and Interstate 78.

So let’s assume Route 22 is seeing a similar drop in traffic. Airport Road averaged 86,000 vehicles a day on Route 22 at Airport Road back in 2018. If we cut that figure by 48%, we’d be seeing 44,720 vehicles under the coronavirus.

Late last year, I was able to dig up some old traffic counts from The Morning Call archives. It showed the same interchange saw an average of 41,435 vehicles a day back in 1969. The chart showed that traffic counts had increased by at least 1,000 vehicles every year, sometimes as many as 4,000 a year.

I don’t know if the 1970s saw the same growth. I assume the 1973 oil crisis crimped those figures. But if traffic increased 1,000 vehicles a year before then, you would have been in the right ballpark in 1972.

I won’t deny I had to take some leaps of faith on this one. If you think I’m overlooking something or if you have some better data I can access, please send me an email and share.

A reader shares his love

Last week, I commiserated with a reader frustrated that he can’t go for a car ride under the stay-at-home order. Apparently, this was fighting words for at least one reader.

Yep, everyone needs aid -- but more importantly, the economy needs to start up again. I don’t care how gradual you do it, it has to be done. People have to cope with the unknown just like we have for centuries.

From the sound of your article, you obviously are a Democrat -- just like The Morning Call rag -- always presenting the Democratic view!

-- Bernie Wallerich

I consider it a Bad Ideau2122 to ignore the advice of the world’s leading medical experts in the middle of a pandemic. They are advocating for social distancing. Ignore them at your own peril.

At the same time, I recognize that blanket rules sometimes lead to dumb outcomes. Government officials don’t want people driving because they’re worried the travelers may contract the virus or pass it on when they get out of their cars. It makes sense for 99% of cases, but Sunday drives to nowhere, in particular, are part of that exception. The rule is frustrating, but I see the intent, and I’m willing to live with it.

My desire to go for a peaceful road trip pales in comparison to the critical work of reviving the economy. We need to pick and chose our battles. Too many people are actually dying to demand the privilege to go for a road trip. And as the government has always been quick to remind ticketed motorists, driving is a privilege, not a right.

Lastly, and I swear I’m not making this up, I am formally registered as a member of the Cocktail Party. And let me tell you, I could use a stiff drink right about now.

Morning Call reporter Tom Shortell can be reached at 610-820-6168 or [email protected].

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