COVID-19 and Car Insurance: How the Pandemic Impacts Premiums in Louisiana
When COVID-19 struck, the car insurance industry had to react to high levels of uncertainty. Would the shutdowns harm insurers? How would things change with many of Louisiana’s vehicles now sitting for weeks without being driven?
According to the Louisiana Department of Insurance, many insurers offering private passenger auto insurance took the step of offering rebates to customers for their premiums, as well as reducing their rates.
Nationwide, April 2020 saw 40.2% fewer miles driven than April 2019. This may have benefitted insurance agencies in the short term, as fewer miles driven meant fewer accidents to cover. With reduced payouts, the second quarter of 2020 was better for insurers than the first.
There is a secondary effect that makes it unlikely for Louisiana car insurance premiums to decrease due to COVID-19. The roads have been emptier than usual, which is great for those needing to get places but also more dangerous because it encourages speeders to lay on the gas.
This could manifest as an uptick in speeding tickets and injuries, which put a strain on insurers and their wallets.
Much like gasoline, you can’t drive without car insurance. Getting caught without it is expensive and could get you into a lot of trouble in the short and long-run.
Choose a reputable, locally trusted company like USAgencies to provide you with high-quality car insurance during the pandemic. You can find both owners and non-owners policies with us, giving you the flexibility you need to continue getting from A to B in these unprecedented times.
You can get a quote online, call us, or go into one of our offices near you today! USAgencies is here to help.