Should the New Year have you looking at your car insurance? A lot of things in the insurance world could have changed since the last time that you evaluated your car insurance needs. Some of those things are the current legal environment that we are in. Another are area that could affect your car insurance is inflation. Finally, supply chain and manufacturing issues can affect your car insurance.
How does the legal world affect my car insurance?
Verdicts from the court cases directly affect your auto insurance premiums. Higher payouts are the main cause. The rise of nuclear verdicts, (verdicts with huge payouts) has been a big driver of increased cost. Factors that have caused the increase in verdict payouts are things like increased salaries for jobs as well as an emphasis on head injury payouts. The pandemic has also led to increased driving speeds as well as an increase in distracted driving. These two factors are also responsible for the cost of a settlement increasing. That increase in settlement cost is unfortunately passed onto the customer. Another area this affects you though is your liability needs. If the average cost of an auto insurance claim will continue to rise, is your liability limit on your auto insurance enough to keep to compensate someone in the event of an accident?
Everyone is talking about the supply chain and inflation, how does that affect my car insurance?
Both inflation and the supply chain can lead to an increase in your auto insurance premiums. Both of these issues can affect the cost of parts. Again, the increase in cost of parts leads to an increase in insurance premiums. In other words it doesn’t matter if the part is scarce or just has an increased cost. These two factors can be compounded when you consider that in a vacuum the cost to make a car is more today due to increased safety features and items that make the car cost more overall. Much like the previous paragraph, an increase in cost may mean that your property damage number is not high enough to cover the cost of another persons car. If you are at fault, would your property damage amount cover a new car for someone?
All of these issues are out of my control, can I do anything to positively affect my car insurance?
Yes, factors like inflation, supply chain issues, and nuclear verdicts are out of your control, but you can do some things. One thing you could do to help with your auto insurance cost is enroll in your companies telematics program. These programs range from discounted rating factors to gift cards for safe driving. Most of these programs can be app based or have hardware that plugs into your car. Staying accident and violation free can also help you keep safe driver discounts. Finally, paying attention and not driving distracted can have a positive impact on the cost of your insurance.
Where can I learn more on if the New Year means I need to evaluate my car insurance?
The New Year is the perfect time to re-evaluate your car insurance needs. You can reach us at 412-344-2800 to discuss. With the current environment what coverages you have may not be enough. You can also reach out to us via our client center or contact us page. Click the word to get started. If you want more info on insurance and safety topics stop by our social media accounts. We are active on Facebook, Twitter, Instagram, and YouTube. We hope that everyone is off to a safe New Year. If you need help with your car insurance remember to contact us.
