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The Impact Of COVID-19 To Your Auto Insurance Premiums

​Since the COVID-19 health crisis arose, people have been encouraged to maintain social distance and mandated with the stay at home orders. Today, many vehicles are sitting in garages and parking spaces due to these protocols than the typical setup. If you are someone with auto insurance, you can be wondering how the current situation impacts your auto insurance or the auto insurance industry itself. Here are some takes that you must know.
Effect Of COVID-19 Pandemic To Auto Insurance Industry
Due to the present condition that fewer cars are driving out on the road, you assume or expect that your insurance premiums will reduce. Technically, the risk is the basis for the entire auto insurance industry. Your auto insurance premium constitutes the convergence of the three main risk factors, which are:

The Chances Of Filing An Auto Insurance Claim
It shows that when the pandemic started, there’s a significant decrease in the number of vehicles you can see on the road. However, having clear roads can stimulate speeders, so there is a chance that streets become more dangerous. Additionally, filing your insurance claims or claim resolutions relies more on digital technology nowadays due to the present condition and social distancing matters. 

The Cost Of Filing Your Auto Insurance Claims
Research says that there is an unsteady argument regarding the idea that you are less likely to get a new car at a high price because recent vehicles’ sales have reduced to over 40%. Although you may see this condition as an advantage, you should also consider that medical expenses may increase at this period.

Shopping Around To Find Better Insurance Rates
The sole reason why your insurance company would choose to reduce their rates is because of the risk on roads and higher bills. Besides, they should render services that can surely meet your demands and be competitive in the industry. 

Insurance Providers Reduce Premiums Only When Necessary
Even though more roads are empty and the car sales are dropping, there is a small-scale arithmetic reason why your insurer would reduce premiums during this crisis. You should know that an increase in premiums may happen if there is an increase in the rates of speeding and higher medical expenses. But the thing now is that due to the client’s expectations of trimming down the costs of premiums, insurance providers need to keep up and compete in the market. 

The coronavirus outbreak has affected the auto insurance industry to some extent. From the chances of filing a claim and the cost of insurance claims and premiums, it has exhibited some marginal changes. Due to this, it is significant that you choose the provider which gives comprehensive policies that best suits your needs and grab discount opportunities to trim down insurance costs. 

At Western Pacific Insurance, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at 702-932-3105 or Click Here to request a free quote.

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