Staying at home and closing nonessential businesses during the COVID-19 crisis has resulted in one major benefit for people who still need to drive their vehicles: fewer cars on the road.AutoLiability
But the question is: Will the decrease in vehicle use ultimately result in lower auto losses for insurers?
The question comes down to two ways we measure losses: frequency and severity. Fewer cars on the road will likely mean fewer accidents and claims, leading to a decrease in frequency.
But fewer cars may also have some offsetting severity-related effects.