Why are Auto Insurance Rates Possibly Going Up?
As the auto industry deals with an increase in loss costs, here are some of the factors
that may affect premiums moving forward. Here at Jaffery Insurance, we want to make sure our clients have the right coverage for the right price.
1. 18 weather-related disasters with losses of $1B+ in
2021 to date.
2. Used car prices up 26.4%, new car prices up
9.8%.
3. Supply chain issues triggering a shortage of chips-
and new cars.
4. Labor shortage; the need for 3 times as many trained
auto technicians.
5. Average car insurance claim costs up 20%; parts
costs up 6%.
6. Increase in severity of auto accidents, number of
fatal car crashes up 18.4%
Check out today’s episode of Tip Tuesday with Michelle Jaffery & Bobby Jaffery to learn more about why auto insurance rates are possibly going up. If you have any questions or would like an insurance review, feel free to give us a call at (402) 451-2500.
