Digital Exclusive: How COVID-19 has a big impact on insurance

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(YourBasin) – With stay-at-home orders in effect till at least April 30th, Governor Greg Abbott tells Texans they should not leave their homes unless it is for essential purposes. With Texans at home that means less driving on Texas roads.

In a time to save money many look to their insurance policies to see where they can cut down to save financially.

“Auto insurers over the last seven to ten days have offer, cumulatively more than ten billion dollars in auto insurance premium relief. This has been anywhere from fifteen to twenty-five percent reductions in premium payments,” says Michael Barry of the Insurance Information Institute.

According to Barry, the relief will last for April and May. With the relief, insurance companies are offering refunds, rebates, delayed payments, and other assistance for their customers.

“Some insurance companies who are actually stepping up and really, you know, helping consumers either by giving rebates or discounts or offering payment, delayed payments. You know so, it’s really important to work with your insurance company. Call your agents and say ‘hey, you know, are there any programs or assistance programs,'” says Camille Garcia of the Insurance Council of Texas.

Though there are lower mileages and less claims filed, the risk isn’t completely gone.

“But the risk hasn’t completely gone. I mean, we’ve see tornadoes, we have hurricane season coming up there are other risk to autos outside of accidents but clearly given what’s going on in the country right now there’s lower mileage, there’s few claims being filed and the auto insurers are giving monies back to their customers,” says Barry

As COVID-19 continues to impact our lives we ponder when is this all going to end. But, experts say that his could potentially be seasonally and a second wave come in the fall. Insurance companies could be hit with the same impact again.

“They’re looking at the future. They’re looking at what happened yesterday. And, they are really trying to make that under writing and that actual decision to determine those pricing effects. So, you know there are just so many factors that go into insurance,” says Garcia.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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