Car insurance rates are on the rise. A lot of elements go into what you pay for car insurance. The type of vehicle you own and your driving history are a coupe of the major factors. There are plenty of other factors that affect everyone no matter their vehicle, or driving history. Here are some of the factors driving auto rates up.
- Vehicle Prices – Both new and used vehicle remain high. Most manufacturers are focusing on producing higher priced vehicles expensive features. This along with continued supply chain issues continues to drive vehicle prices up.
- Costs to Repair Vehicles – Supply chain issues continue to plague the auto parts industry. Part are increasingly more expensive and harder to obtain. Labor costs for the repair technicians are sky-rocketing. Labor shortages continue to increase causing claim amounts to increase. New technology includes pricier parts. Cameras and sensors are great to prevent accidents and keep us safe, however those parts are expensive and cost more to replace if damaged. Windshields used to be inexpensive to replace, but now windshields have cameras for lane assistance and can cost thousands to replace and recalibrate. Bumpers were also an inexpensive fix, but now contain sensors that cost more and also need calibration.
- Inflation – Auto insurance is not immune to inflation. Parts and labor costs have increased the same as other products and services you purchase and use.
