What Is Driving Car Insurance Rates Up?
Are you frustrated with increasing car insurance premiums? While a lot of personal elements go into what you pay for car insurance – vehicle choice and driving history – there are plenty of factors that affect everyone across the board. Here are some of the key elements driving today’s auto insurance prices:
- Pricier Tech – Cameras and sensors help keep us safe, but also cost more to replace if damaged. Many vehicles now have over 30 pieces of tech not present on older models.
- Vehicle Parts – Inflation has hit vehicle parts especially hard with prices up by 10% this year (2-3% is more typical).
- Repair Costs – Supply chain issues and labor market pressures have driven up repair costs by as much as 20% since 20201.
- Vehicle Prices – Prices for used vehicles jumped more than 27% in 2021. New vehicle prices are more than 14%1.
- Inflation – The Consumer Price Index has risen more than 9 percent as of July1. That means we’re all spending more for the same goods and services.
- Labor Shortages – A decline in available auto techs isn’t just a pandemic challenge, with 100,000+ retiring in the coming years2.
At Dowd Insurance, we are here for your, and we don’t take the price you pay for car insurance lightly. If you’re concern about the increasing cost of your car insurance premium, contact us today for a FREE quote and insurance review.
1Source: Bureau of Labor Statistics 2Source Crash Course from CCC Intelligent Solutions
Tags: Auto Insurance