How are consumers perceiving auto insurance during the COVID-19 crisis? [Insurance Information Institute]
Since people are driving less in the midst of COVID-19 related stay-at-home orders, many auto insurers have responded with premium refunds totaling about $10 billion.
How are consumers reacting to these refunds? A May 5 webinar co-hosted by Cambridge Mobile Telematics’ (CMT) VP of Insurance & Government Affairs, Ryan McMahon, and J.D. Power’s VP of Insurance Intelligence, Kyle Schmitt, shed light on this question.
J.D. Power has been conducting consumer sentiment surveys since March 24. Schmitt said that one key takeaway is that in light of pandemic related layoffs, customers are thinking pragmatically about auto insurance, so the timing of the premium relief announcements was excellent. However, it’s important to note that auto insurance is not top of mind for many consumers struggling to keep the lights on or food on the table, and not everyone is aware of refunds.