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Why is Auto Insurance going up?

By July 8, 2022No Comments

With US inflation at a 40 plus year high, the hard truth is insurance companies will need to pass on their higher bills onto the consumer. Inflation created increases the cost of repairs, car rentals and vehicle replacements. The slowed supply chain has increased the time it takes to receive parts and complete repairs. This all results in increased costs to the insurance companies. 

At the start of the pandemic, Americans wer driving less, this resulted in fewer accidents and many insurance companys sent refunds out to policyholders and lowered rates. Now mileage driven is back to pre-pandemic levels. In fact, accidents have increased as well. The vehicale crash fatality rate jumped by 12%. It seems that Americans picked up poor driving habits during the empty roads of the pandemic.

Modern cars and now more like computers on wheels. Take the headlight for example. What use to be a 5 minute project to replace a $10 lightbulb has become a multi hour chore to disassemble a fender to replace a $350 smart headlight. 

This is just some of the reasons we are seeing increases in our insurance bills.