Following the Pandemic Refunds, Some Car Insurance Companies Seek Rate Increases
PINELLAS COUNTY, FL- In the early stages of the pandemic, many car insurance companies offered their insureds discounts and refunds. It now appears that some car insurance companies want to raise their rates.
Some residents in the state received fifteen or even twenty percent refunds on insurance when the pandemic led to a drastic decline in driving in the state. Now the insurance companies that offered those refunds are hiking their rates. One driver said his auto accident insurance policy jumped by $300 for a six month coverage period. With the rate hike came a letter explaining that there are many factors that can lead to a rise in rates, including driving history, age, location, and a rise in repair costs. The letter did little to help the driver understand the reason as none of the explanations applied.
Nothing appears to indicate that the insurance companies are earning more in profits than they are legally permitted. If the companies did make an excessive profit, the law would dictate that customers would have to be refunded to cancel out the extra profit.
While many hoped that the reduction in traffic would lead to a drop in traffic crashes and car accident fatalities, the reality is that reckless drivers taking advantage of the empty roads managed to keep crash rates high. Extreme speeding instances caused issues for law enforcement and made the empty roads more dangerous.
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