GREENSBORO, N.C. — New cars, used cars, the prices are up for both which may make you more apt to simply stay with whatever is in your driveway.
Here’s the thing, even if you're not in the market for another car, you're about to pay more to insure what you drive.
“Right now used car prices are up over 26% and new car prices are up almost 10% so if you have a car accident and you have to buy a new car, the insurance company now has to spend all this extra money to get you another vehicle,” said Karl Susman, Susman Auto Insurance.
On top of that, supply chain issues are making repairs more costly and time-consuming. The labor shortage is also keeping cars sitting at the repair shop for longer periods. Lastly, people are just driving more and that means more accidents and a lot more claims.
An insurance adjuster normally deems a car a total loss if the cost to repair the car exceeds 70% of the value of the car. With the increase in repair costs and parts, the chip and shortage situation sets up for more cars to be totaled, possibly even when they hit the 50% mark. The bottom line is this, don't be surprised if your car insurance premium goes up. In fact, expect it.
HOMEOWNERS POLICIES GOING UP TOO
The NC Insurance Commissioner approved an average of 7.9% increase instead. The new rates kick in on June 1, 2022.
You're about to get an increase, twice. You have this increase coming in June of this year and right now, the cost to rebuild your house if something were to happen, has increased due to supply chain issues and inflation, which means you need more insurance on your house.
Be prepared for two of these increase letters. You'll get one now about upping your insurance to meet rebuilding costs and another in the summer.