Inflationary pressures and shortages are contributing to the rising costs to repair and replace vehicles.
Here are some of the factors that may affect premiums moving forward.
15 separate $1B+ loss events from weather as of Oct 11, 20221
Used car and truck prices up 7.2%; new vehicle prices up 9.4% Sept ‘21 - Sept ‘222
Supply chain issues have triggered shortages of chips — and new cars3
High severity in auto accidents; number of fatal car crashes is up 15%, 2022 compared to 20204
There are labor shortages,5 and wage increases are up 8.5%, Q1 ‘22 over Q1 ‘216
Vehicles: bodywork costs up 12%, repairs up 15%, Nov ‘21 compared to Nov ‘227
Have additional questions?
We're here for you. Please contact a Travelers representative or your independent agent who can help answer questions you may have about the insurance market trends, assess your current coverages and explore discounts for which you may be eligible.
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