BEDFORD, N.H.–(BUSINESS WIRE)–ValChoice, an insurance data analytic company and consumer advocate, today released a special market report titled “COVID-19 Windfall Profits Estimated at $100B for Car Insurers.”
In the report, ValChoice estimates that insurance companies could realize $100 billion in windfall profits due to the change in driving habits forced by shelter-in-place mandates.
This resulted in millions of vehicles that are now parked in garages and driveways, which translates into hundreds of thousands of fewer accidents and billions of dollars in claims that won’t have to be paid.
“Auto insurance companies could receive outsized profits due to COVID-19. This is money owed consumers who are now driving far fewer miles and presenting far lower risk to their carriers. These consumers should demand refunds to improve their cash flow during these difficult economic times,” said Dan Karr, CEO and Founder of ValChoice. “Only two insurers stepped up so far. This is not nearly enough and represents only a small fraction of the cost savings people deserve.”
While savings for individual consumers will vary depending on how much their situation has changed, ValChoice recommends that consumers contact their carrier and adjust their coverage to save money. To obtain information on how much money can be saved, consumers can run their own estimates using the ValChoice car insurance calculator.
ValChoice® is the only company to provide consumers, agents and advisors with information on which home and auto insurance companies offer the best value: price, protection (claims handling) and service. The company’s analytics platform collects and analyzes millions of financial and complaint data points and delivers the results in an easy-to-use service that Forbes Magazine describes as “Carfax for insurance.” Using ValChoice, consumers are finally able to shop for insurance based on value rather than making decisions blindly based on price or advertising campaigns. ValChoice was established after its founder was involved in a serious accident and multiple insurance companies refused to pay his medical bills. He vowed to help others avoid the same outcome.