COVID-19 is a case without precedent for the insurance industry. With lockdowns in several states and places, many drivers using their vehicles are no longer on the route. There possibly are other ways to take care of our car or using it nowadays. However, the effect COVID-19 on car insurance claims has considerably decreased.
While insurance lenders may see this as good news, what does it mean for those customers who have purchased insurance that they cannot use? And what consequence(s) does it portend for the entire automotive industry?
Change in Behaviors
Those who can work remotely can generally prefer to choose to make more flexible arrangements. If people use their cars less often, car share or use public transportation, this will eventually influence what consumers expect from their insurance plans.
Can the use of telematics make insurance ‘pay as you go’ the new standard for drivers? Usage-based plans may … Read more