How the rising vehicle repair costs increases your auto insurance.
The cost of labor and materials has increased dramatically in the last five years due to inflation. This affects your insurance price because if you were to have an auto insurance claim and needed to repair your car, it would be MUCH more expensive to do that today. Insurance carriers would in turn be paying higher amounts to you when you file your claim.
Here are some of the biggest factors that have increased to these rising auto repair costs:
1. Labor and material price increases
2. Advanced and costlier vehicle technology
3. Part shortages
4. Chip shortages for new vehicles, driving customers to buy used cars
5. Large fleet companies seeking used vehicle replacements, decreasing the demand for new vehicles.
You can learn more about these in our blog post, “Why did my auto insurance go up?” here.
Here’s what it looks like in real numbers.
Check out these staggering statistics from our partners at Grange Insurance:
Insurance carriers are adjusting rates and deductibles to account for the rising cost of repairs and other economic factors.
So what can you do?
While it can feel like many of these things are out of your control, there are things that you can personally do to help lower your insurance bills.
- Get your policies coordinated. Do you have all of your polices with one agency? If not, you could be missing out on discounts. Coordinating your policies is one of the easiest ways to save money!
- Schedule a time to have a policy review with your agent. At Holley Insurance, we offer an annual policy review with every one of our clients. This ensures that your coverage is up-to-date and we about check to make sure that you are receiving every possible discount.
- Consult your agent before filing a small claim. In some cases, it might be better option for you to absorb the cost instead of filing a claim. Need help deciding if you should file a claim? Check this out.
We know that no one likes to see their rates increase. We are here to help. Give us a call at 540.334.4225 if you’d like us to review your policies.
