BEDFORD, N.H.–(BUSINESS WIRE)–ValChoice, an insurance data analytic company and consumer advocate, today released a special market report titled “COVID-19 Windfall Profits Estimated at $100B for Car Insurers.” In the report, ValChoice estimates that insurance companies could realize $100 billion in windfall profits due to the change in driving habits forced by shelter-in-place mandates. This resulted in millions of vehicles that are now parked in garages and driveways, which translates into hundreds of thousands of fewer accidents and billions of dollars in claims that won’t have to be paid.
“Auto insurance companies could receive outsized profits due to COVID-19. This is money owed consumers who are now driving far fewer miles and presenting far lower risk to their carriers. These consumers should demand refunds to improve their cash flow during these difficult economic times,” said Dan Karr, CEO and Founder of ValChoice. “Only two insurers stepped up so far.