PropertyCasualty360.com reported that nearly four in 10 U.S. consumers said they reduced or eliminated insurance coverage this past year as a way to help save money, according to a ValuePenguin.com survey.
A noticeable number of survey respondents who had their wages cut because of the COVID-19 pandemic also reduced or got rid of their auto insurance.
While these consumers were cutting auto coverage, driving was actually becoming a more risky undertaking, reported PropertyCasualty360.com.
Andrew Hurst, an analyst with ValuePenguin, told PropertyCasualty360.com, “Moreover, 22% who lost wages because of COVID-19 reduced or eliminated coverage because it was ‘unnecessary.’ While this doesn’t mean that this 22% cut their auto insurance, our results support the notion that people who drive less than they normally did before the pandemic, especially if they’re driving less now because they’re going into work less, reduced their auto insurance coverage to some degree in the past year.”
The survey also found that 40% of respondents making more than $100,000 a year completely eliminated their auto coverage.
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