• About Us
  • Contact Us
  • Our Team
  • Blog
Insure My Quote
  • Home
  • Insurance
    • Definition
    • Companies
    • Coverage
    • Claims
    • Payment
    • Rates/Quotes
    • Policy
    • Laws
  • Repair
    • Shops
    • Technology
    • Services
  • Replacement
    • Shops
    • Protection
    • Parts
    • Insurancee
    • Coverage
  • System
    • Engine
    • Fuel
    • Ignition
    • Electrical
    • Exhaust
    • Drive Train
    • Suspension
    • Steering
    • Brake
    • Frame
    • Body
  • Warranty
    • Warranty Definition
    • Warranty Companies
    • Extended
    • Warranty Insurance
    • Plans
    • Warranty Coverage
    • Warranty Claims
    • Expiration
  • Home
  • Insurance
    • Definition
    • Companies
    • Coverage
    • Claims
    • Payment
    • Rates/Quotes
    • Policy
    • Laws
  • Repair
    • Shops
    • Technology
    • Services
  • Replacement
    • Shops
    • Protection
    • Parts
    • Insurancee
    • Coverage
  • System
    • Engine
    • Fuel
    • Ignition
    • Electrical
    • Exhaust
    • Drive Train
    • Suspension
    • Steering
    • Brake
    • Frame
    • Body
  • Warranty
    • Warranty Definition
    • Warranty Companies
    • Extended
    • Warranty Insurance
    • Plans
    • Warranty Coverage
    • Warranty Claims
    • Expiration
Insure My Quote
Why Are Auto Insurance Rates Going Up?

Why Are Auto Insurance Rates Going Up?

by Jaylynn Dexter
February 13, 2022
in Car Insurance
Reading Time: 2 mins read

A variety of factors determines the cost of car insurance. Your age (except in Hawaii), gender (in most states), driving history, car type, and coverage options all have an impact on your premium. Rates are also affected by broader factors, such as whether states implement changed insurance legislation, the likelihood of claims occuring in specific areas, or rising vehicle maintenance expenses.

Inflation

Inflation is likely to be the primary factor of rising vehicle insurance costs in 2022. The Consumer Price Index (CPI) increased by 7.0 percent between December 2020 and December 2021. This indicates that we are spending 7.0 percent more on average for the same goods and services a year ago.

Inflation wreaked havoc on the new and used car industries in 2021. Between December 2020 and December 2021, the prices of new vehicles and trucks increased by 11.8 percent, while the prices of used cars and trucks increased by 37.3 percent. Vehicles are also more complicated, increasing the entire cost of ownership. Even little mishaps can result in hundreds or thousands of dollars in damage to fragile electronics, necessitating specialist repair.

Disruptions in the supply chain

The last five years have seen a perfect storm of supply chain disruption. COVID- In 2020, 19 shutdowns resulted in lower demand in some industries. There was a decline in the demand for vehicle parts as fewer people were on the road and cars were used less. Then, in February 2021, an ice storm knocked out facilities and factories across the South. The Suez Canal was closed for six days in March 2021. People resumed their normal driving habits, resulting in greater demand but decreasing supply. 

Shortages of labor

Insurance expenses are likely to rise as a result of fewer workers. Pay rates often increase as an incentive when fewer individuals do a specific activity. For instance, a mechanic now works long and takes fewer vacation days. He charges $300 for the same service to make up for it.

Want to learn more about auto insurance? Read this blog on how to transfer auto insurance.

Related Posts

Why Are My Auto Insurance Rates So High?
Car Insurance

Why Are My Auto Insurance Rates So High?

February 17, 2022
Who Offers Non-Owner Auto Insurance?
Car Insurance

Who Offers Non-Owner Auto Insurance?

February 16, 2022
What Is Full Coverage Auto Insurance In Arizona?
Car Insurance

What Is Full Coverage Auto Insurance In Arizona?

February 15, 2022
Insure My Quote

We formed Insure My Quote so people would have a go-to place where they can easily interpret detailed financial information and decisions for our everyday readers, providing them the confidence to manage every aspect of their business wherever in the world they may be.

Quicklinks
  • About Us
  • Contact Us
  • Our Team
  • Blog

Copyright © Insure My Quote. All Rights Reserved.

DMCA.com Protection Status

  • Privacy Policy
  • Terms Of Use
  • Cookie Policy
  • Editorial Guidelines
  • Sitemap
  • Write For Us
  • Home
  • Insurance
    • Definition
    • Companies
    • Coverage
    • Claims
    • Payment
    • Rates/Quotes
    • Policy
    • Laws
  • Repair
    • Shops
    • Technology
    • Services
  • Replacement
    • Shops
    • Protection
    • Parts
    • Insurancee
    • Coverage
  • System
    • Engine
    • Fuel
    • Ignition
    • Electrical
    • Exhaust
    • Drive Train
    • Suspension
    • Steering
    • Brake
    • Frame
    • Body
  • Warranty
    • Warranty Definition
    • Warranty Companies
    • Extended
    • Warranty Insurance
    • Plans
    • Warranty Coverage
    • Warranty Claims
    • Expiration