Who is profiting while the world suffers through coronavirus? Answer: Auto Insurance companies such as Allstate, Progressive, GEICO, Liberty Mutual, and State Farm, to name a few. Who does not want you to know this? Answer: See above.
Why? Less cars on the road means fewer cars and therefore, fewer car accident claims. Fewer Car Accident Claims means big profits for auto insurers.
One American Family Insurance’s executive was quoted in the Wall Street Journal that claims are down “20-40%” weekly from March 11 compared to last year. And that was one month ago – before most of the country was in lockdown and mostly off the roads.
This means that big Wall Street auto insurers will literally save billions of dollars this year due to COVID19. Billions. If you don’t believe this personal injury lawyer, here is a quote from a recent cnn.com article:
“Figures reported by Allstate to state insurance regulators show it pays out a little more than $1 billion a month in auto insurance claims, he said. Karr’s modeling suggests that those claims are likely falling by about 85% due to the reduced number of accidents.”
The Insurance Premiums You Pay Fatten The Auto Insurers’ Profits
It’s nice to be an auto insurer – it is a business in which the government requires all of us drivers to rightfully purchase their product – an auto insurance policy. How much do we pay? And how are these premiums calculated? Well, in part that is secret and in part it is based on factors such as what the insurers pay out in claims.
According to the web, Allstate’s quarterly revenue in Dec. ’19 alone was nearly $12 billion dollars.
Less claims means more profit. Have you looked at the stock prices of the major auto insurers since the market dropped? Allstate and its cronies have all performed much better than the overall market recently!
Allstate’s Sinister “Offer” To “Help” Its Policyholders
So now Allstate comes and puts out a national story this week — it is going to “help” us consumers by voluntarily returning a fraction of its premiums collected, the number floated in the papers was $600 million. Well, that may sound like a lot to you, but is it?
From the same CNN article, the same insurance watchdog expert questions where is the rest of the money (hint: right now in Allstate’s pocket):
“I think it’s great what Allstate did. But where’s the rest of savings?” Karr told CNN Business. He said American Family Insurance’s refund will probably equal even less of the average premium than Allstate’s target of a 15% reduction.
Hmm. Sounds a little fishy to me. But what a great idea. Let’s get out in front of this before anyone notices – we will just take a little less of a massive, unfair, and possibly illegal profit now, so perhaps no politician or regulator will notice and actually investigate. Good PR, it seems.
Well, this personal injury lawyer is not buying it! I have fought Allstate and the others too long and know a bit too much.
So, beware, and consider asking Allstate (if you are a policy holder, which I do not recommend)… hey, where’s the rest of my money?
It’s Good to Know Mike Bottaro – 24/7 Top Rated Car Accident Legal Help
At the Bottaro Law Firm, LLC, we handle all types of personal injury cases such as car accidents and insurance disputes every day. Honesty. Integrity. Results. Our experienced legal team is here to fight for your rights. Contact us in any method you prefer 24/7 for a fast, free, and confidential consultation about your case. Text or call: 401-777-7777 or fill out our free and confidential online form