TYLER, Texas (KLTV) – The cost of just about everything has gone up significantly over the last year, including auto insurance, increasing at an annual rate of about 19.2 percent from last year.
But experts say the main driving force for the increase is auto parts. Tim Jones with State Farm Insurance in Tyler said supply chain issues hold responsibility, especially delaying parts for foreign cars. This has led to the higher cost of repairs.
“A fender two years ago on a vehicle, that same fender now is probably 30, 40 percent higher,” said Jones.
Another factor is more car crashes. According to TxDOT, in Smith County there were nearly 600 more wrecks in 2022 than in 2020.
Personal Injury attorney at Roberts & Roberts Law Firm, Justin Roberts, said, “Generally that the number of pedestrian accidents in particular has increased significantly since the pandemic. And we know that motor vehicle accidents as well of course as people gotten back on the road. So in East Texas, across the nation, there’s a trend of not only more accidents, but more deadly accidents.”
Other attributions include a rise in damaged and totaled cars as weather events multiply.
And many drivers may be wondering if there will be relief anytime soon.
“I really don’t see that at this point. Inflation is involved in everything,” said Jones.
But there are still ways to save.
Jones added, “Safety matters, the ratings on a car matter when you buy certain cars and they have good safety ratings, they’re usually going to have a cheaper auto premium.”
Another tip is to evaluate whether you need certain types of coverage, or if you have redundant coverages.
“But above all else, they want to make sure they maintain underinsured motorist coverage. A lot of people are dropping that coverage now to save money. But what’s happening is a lot of people do not have insurance anymore because of the cost, and if you’re in a wreck with them, if you don’t have that underinsured motorist coverage, you’re going to be in a problem,” said Roberts.
Copyright 2024 KLTV. All rights reserved.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.