Auto Insurance Rates Aren’t Immune to Inflation

It’s certainly no secret that the cost of our day-to-day living has risen dramatically in the past year, and auto insrance rates are no exception. From groceries and gas to rent and mortgages, everyone is feeling the financial strain right now. Although your auto insurance rate isn’t immune to inflation, our insurance experts at Lifetime are here to help break down the many factors driving auto insurance rates right now, so you can make the best coverage decisions to meet your needs.

Circumstances Impacting Auto Insurance Rates

When it comes to economic ripple effects like inflation, there’s usually a multitude of reasons for insurance price hikes. Over the course of this article, we will be taking a 40,000-foot-view of multiple factors currently driving auto insurance rates, including the following:

Extreme Weather

According to NOAA and National Centers for Environmental Information (NCEI), there were 20 separate $1B+ loss events from weather in 2021.

Car Price Hikes

As the Consumer Price Index and U.S. Bureau of Labor Statistics of Oct. 13, 2021 state, used car prices are up 26.4%, and new car prices are up 9.8%.

Supply Chain Issues

With the global supply chain issues we’ve been experiencing, there is a resulting shortage of chips – and new cars, driving the prices up.

More Fatal Accidents

Labor + Wage Issues

As stated in the 2020 Technician Supply & Demand Report and echoed by the U.S. Bureau of Labor Statistics, Labor shortages and wage increases are up 9%.

Pricey Parts + Claims

In a recent study conducted by CCC Intelligent Solutions, it was found that the average car insurance claim costs are up 20%, and car parts costs are up 6%.

Will Auto Insurance Rates Keep Rising?

While there is no predicting the future, the statistics suggest that we are likely in for further increases to auto insurance rates. With the supply chain issues, labor shortages, and wage increases causing price hikes in the production of cars and car parts, any auto insurance claims are inevitably going to become more expensive, as well. Furthermore, if the uptick in weather-related loss events and rise in fatal accidents persists, auto insurance rates will likely continue to increase.

Compare Some Quotes

Why do you need to compare auto insurance quotes? One of the best things you can do to ensure you’re paying the least for the best is shop your auto insurance policy and compare prices across a few different carriers. Our insurance pros can shop your policy and find the coverage and rates that work best for you!

Why Do You Need to Compare Auto Insurance Quotes?

With so many factors out of our control, we are proud to be able to do what we can to help our clients build the best coverage at the best price possible. As an independent insurance agency, we have access to multiple carriers, allowing us to help you explore a broad array of different policies at different price points. If you’re ready to learn more about what our experts at Lifetime Insurance can do for you, give us a call at (972) 771-2622 or visit us at our website!

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Fight Rising Auto Insurance Rates with Lifetime

From weathering actual storms to weathering insurance rate price hikes, our team is here to help! Give us a call today at (972) 771-2622 or click the button below to learn more about what Lifetime can do for you.