Just when auto insurers return a portion of premiums as result vehicles staying on drives and fewer trips data shows an increase in road traffic accidents and severity of claims.
Time to think this through!
These data should be very worrisome for those carriers, including Geico, Liberty Mutual, American Family, and USAA, that just returned billions in premiums to auto insurance customers based on projected reductions in crash frequency, without considering severity. Even though the roads are clear that doesn’t mean they’re safe. And even though most people are staying home, a rare but deadly crash can be extremely costly. It is the severe and fatal crashes that are likely to be litigated and with increasingly sympathetic juries, just one bad crash can meaningfully affect returns.
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