You probably know how your driving record affects your auto insurance cost. And you know that filing a lot of insurance claims will probably make your prices go up. So if you haven’t got a speeding ticket in 20 years and haven’t filed an insurance claim, why does your auto insurance rate go up?
The thing is, it’s not only about you.
Insurers are huge national or global companies whose costs are affected by national and global events. Things like inflation, global supply chain issues, stock market ups and downs, and healthcare costs can affect insurance prices a lot more than your outstanding driving habits.
Here are just a few of the significant drivers of auto insurance premiums.
Car prices are up, up, up.
Did you know that the cost of cars, trucks, and all automobiles directly impacts the cost of auto insurance? Not just your insurance, ALL auto insurance.
Auto prices are up for a ton of different reasons. Since the global pandemic caused supply-chain shortages for manufacturers, inventory went down. When stock is low, and demand is high, you know what that means. Costs go up. More expensive vehicles are more costly to repair too. That’s where insurance often comes into play. Insurers are paying more to fix cars, so they have to charge more to insure them.
Auto repair and parts costs are up.
Just like the cost of everything else.
It’s not just supply and demand driving up costs. Over the past few decades, more and more expensive electronics have been crammed into vehicles. When accidents happen, those electronics get destroyed and must be repaired or replaced. That’s expensive. Therefore, your auto insurance is more costly.
Healthcare costs are up.
Just like it’s more expensive to repair cars, it’s also more costly to repair people.
Healthcare costs have a significant effect on insurance. Injuries and the cost of medical care is the other big factor in car accidents besides auto repairs. When national healthcare costs go up, so do a lot of other things, including insurance.