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Pandemic Impact on Auto Rates? Increasing Car Values & Part Costs What's the Deal?
November 26, 2021
Will the pandemic and supply chain problems have an impact on your auto insurance premiums?
In my most recent blog post , I discussed how supply chain problems and chip shortages affect insurance payouts. But will the pandemic and supply chain problems have an impact on auto insurance premiums ?
The effects of the pandemic and supply chain problems have been felt in many ways. Some of the realities we are experiencing include the following:
Auto physical damage coverages are typically written without a limit. Claims are paid based on Actual Cash Value. That is the good news as claim payouts will adjust for all the factors above.
If the above challenges persist, we will all see upward pressure on the rates we pay. It is wise to be aware of this situation … and be prepared.
What can we do about it? We need to pay attention to things that we can control that influence our car insurance rates in the other direction. Maybe that’s a good topic for the next “Ask Jeff” blog post?!
- https://economics.td.com/us-vehicle-sales
- https://money.com/new-car-price-record-high-2021/
- https://finance.yahoo.com/news/used-car-prices-roof-might-110000814.htm
- https://tinyurl.com/r29ub55y
- https://www.cedp-edu.com/surge-in-the-need-for-skilled-auto-mechanics/
- https://www.cedp-edu.com/surge-in-the-need-for-skilled-auto-mechanics/
This article may have been originally published at Quora.com.
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
