The many factors driving insurance rates….
Inflationary pressures and shortages are contributing to the rising costs to repair and replace vehicles.
Here are some of the factors that may affect premiums moving forward….
- 15 separate $1B+ loss events from weather as of October 11, 2022. Check out the statistics at https://www.ncdc.noaa.gov/billions
- Used car and truck prices up 7.2%; new vehicle prices up 9.4% (if you compare September 2021 to September 2022). Learn more at the Bureau of Labor Statistics website https://www.bls.gov/opub/ted/2022/consumer-prices-for-shelter-up-6-6-percent-for-year-ended-september-2022.htm
- Supply chain issues have triggered shortages of chips — and new cars. Learn more at https://www.wsj.com/articles/chip-shortages-still-plagues-toyota-other-auto-makers-11667280514
- There are labor shortages, and wage increases are up 8.5%, Quarter 1 2022 over Quarter 1 2021. Check out the most recent data at https://techforce.org/techforce-releases-2022-technician-supply-demand-report/
- High severity in auto accidents; number of fatal car crashes is up 15%, 2022 compared to 2020. You can check out the facts from the National Safety Council at https://injuryfacts.nsc.org/motor-vehicle/overview/prelimiary-monthly-estimates
- Vehicles: bodywork costs up 12%, repairs up 15%, November 2021 compared to November 2022. Learn more at https://www.bls.gov/news.release/pdf/cpi.pdf/
If you have a bit of sticker shock when you receive your auto renewal this year, check with your independent agent to make sure that your insurance policy includes all of the discounts that are available to you.