All in all, policyholders have received $14 billion in premium returns due to the sharp decrease in driving following the coronavirus pandemic. In March 2020, many parts of the United States saw a 60% decrease in miles driven; however, some Americans are driving more. As a result, many are wondering: does less driving mean cheaper auto insurance?
On top of that, many wonder if autonomous vehicles could help decrease car accidents and lower auto insurance premiums. 94% of car accidents are caused by human error, such as speeding, driving under the influence, being drowsy, or even distracted. However, just 6% of accidents are caused by the vehicle’s malfunction, environment, or any other reasons beyond the driver’s control.
Companies like Progressive and Allstate have administered more than $1 billion in givebacks, and autonomous vehicle manufacturers may start offering their own insurance option. Do you know what the future of car insurance will look like?