A Study of the Effect of COVID 19 on auto insurance rates

Muswe Pembamoto

Mentor: Dr. Candice Marshall

Department of Mathematics, Morgan State University

Many automobile drivers have been using the road less since the beginning of the pandemic. Over many years the rate of auto insurance has never been constant and pandemic has added to that. At the beginning of the pandemic, some auto insurers even offered to give back some of the premium paid to them by their customers in order to retain their market share. With the rise in the unemployment rate, some people were unable to afford insurance. Each state in the United States has an annual insurance rate from 2011 to 2020. I have chosen 3 states to analyze, Maryland, Maine with the highest percent of change, and Michigan with the lowest percent of change. For my research, I will analyze the effects COVID-19 has on the auto insurance industry with these 3 states. Using linear regression, I will look at the trends in auto insurance rates from 2011 to 2020 and then predict auto insurance rates for future years.