Car insurance during recession.
The current economic down turn have affected car owners, car insurance companies, car insurance agents and our society in one way or the other. This article intends to give a short overview of recession from many perspectives. They include;
Increase in car insurance fraud: Many car owners have been filing fake claims which intend to get money out from the pockets of car insurance companies. This has made auto insurance companies struggling to determine legitimacy of many auto insurance claims. In some cases, some car insurance companies loose money on this while others sent out a higher premium to finance these claims. This in general leads to high corruption rate in the society.
Increasing rate of drink driving: Since many car owners are out of job, the rate at which drivers drink alcohol and drive have been alarming. This has resulted to traffic disobedience, high crime rate, accident and civil disobedience.
In some developing countries, there have been increases in car theft as a result of this present economic down turn as people are looking for means to survive. This has not only affected the auto insurance companies in settling for car theft coverage but also the government in achieving security stability of the states involved.
– Many car owners have sold there vehicle or park them in there car garage and starts using cheap public transports and bicycle to move around.
– In some countries, car insurance policy holders are reducing there coverage to third party fire and theft.
– Recession have forced most car insurance agents are out of work.
– Some car insurance accident lawyers have been experiencing boom as there is higher litigation cost gained in settling dispute between car insurance policy holder and car insurance companies.
– Some drivers who purchase there vehicle have not insured them in some states and countries due to the fact that they don’t have money to do so. This has start to widen gap between un insured vehicle and insured in terms of statistics.
Moreover, following the trend on how this economic down turn is moving, many auto insurance company have been experiencing lost and this may mean none declaring of dividend to its shareholders.
Finally, this short review have shown that this economic down turn have affected and is still affecting the car insurance companies. My advice to Individual car owners is to drop the car insurance coverage they don’t need to reduce cost.