Leveraging data up to October 2020, the CFA is pushing insurance commissioners to act and mandate refunds.
The data collected from 4 states (Colorado, Maryland, Massachusetts, and Texas) show that various work-from-home and stay-home mandates have resulted in 181,000 fewer accidents in those states.
In addition, the CFA outlines that the major insurers have seen significantly higher profits, even after accounting for the discounts offered earlier in the pandemic. One example provided outlined how Allstate increased it’s policy count in 2020 yet saw a $1.4 billion reduction in insurance losses.
Various states, including Michigan, New Jersey, and New Mexico have issued bulletins to requests relief for it’s policyholders, however only California has so mandated. The CFA and Birny Birnbaum, Executive Director of CEJ are advocating for claims based premium refunds, offering the below table.
Of note, the report does not account for severity, where the remaining accidents could have greater payouts due to them occurring at higher speeds (beyond the cost of the vehicle).
The CFA report is available at https://consumerfed.org/press_release/auto-insurance-refunds-needed-as-new-data-show-crashes-remain-well-below-normal-due-to-pandemic-23-fewer-accidents-in-september-and-october/