When the price of cheap car insurances falls, Apple Care is likely to come to your rescue
Cheap car insurance companies are not the only ones struggling with the fallout from the low-price of gasoline and a slowdown in the demand for cars.
Apple Care, a self-driving auto insurance provider that has been around since 2015, is expected to take the hit from the price drop, according to a new report from investment firm Axios.
Axios said Apple Care has been hit the hardest by the falling price of gasoline, which is expected in the first quarter of 2021.
The firm expects Apple Care to take in a loss of $12 million, which would be the lowest amount of money Apple has ever made from a car accident.
The company has been investing heavily in its self-drive network, which will soon allow it to pay out more cash to customers for accidents and other issues.
AppleCare also plans to add a $1,000 deductible to cover accidents and claims that are paid out over the course of the year.
The company is also considering adding a $100 annual deductible for car-related repairs and other costs, Axios reported.