Auto Premium Reductions Do Not Reflect Decline in Claims
April 15, 2020
I previously posted about premium reductions and refunds offered by automobile insurers due to reduced driving. Most people with whom I've spoken have told me that they are getting reductions of 25%. While it's good that families will see some savings, it turns out that the companies are likely saving even more. Claims Journal reports that auto claims have declined by 40% to 50%.
This is another example of why one should never take statements by insurance companies at face value. Too often, there's a gap between the statements and the reality.