Are you paying a lot more for car insurance these days?If so then you're in good company since millions of Americans are having the same problem. The question is what's causing it?
According to industry analysts there are a number of issues that are contributing to the increase.
1- Growing cost and complexity of vehicle repairs.
The price of replacement parts have increased by more than 20% since 2019.
Even windshield repairs, which have historically been relatively inexpensive, have skyrocketed up more than 56% in the same time period! That's because in the past all you needed to replace a windshield was a piece of glass, a rubber gasket and some glue.
Today cars have all sorts of contraptions from sensors to cameras mounted in the glass that all have to be recalibrated when a windshield is replaced.
2- Supply chain issues and labor market challenges.
Many of these issues were created by the pandemic & have also increased the average repair time by a week.
That adds to the cost of rentals you have to pay for.
3- Poor driving habits.
Some insurers and industry experts believe many of today's repairs are linked to what appears to be an increase in bad driving habits like speeding and distracted driving that are making accidents more severe and adding to increased medical costs.
All told last year car insurance companies suffered a net underwriting loss of $33 billion dollars. They've responded by increasing rates, and reducing the number of policies they approve.
So where does Louisiana stand in these increases? Unfortunately Louisiana is number 2 on the list of states with the most expensive car insurance premiums. It looks like: