Inflation: The Consumer Price Index (CPI) rose more than 7% compared to 2020 – the largest increase in nearly 40 years. This means, on average, we are all spending 7% more on goods and services than we were a year ago.
Vehicle Parts: When it comes to the cost of parts for vehicles, those prices have increased by closer to 10%. (Historically, an increase of 2% to 3% from year to year is more typical)
Repair Costs: Recent supply chain issues such as the car chip shortage as well as labor market pressures have caused repair costs to increase significantly, by as much as 20% since 2020. Due to the limited supply of repair parts and a decrease in available workers, repairs to vehicles are taking longer to complete. As a result of this, customers are using rental cars for longer periods of time, thus increasing the cost of insurance claims.
Vehicle Prices: According to auto industry analysts, the cost of used vehicles climbed more than 27% in 2021 while new vehicles are costing 14% more than they did before 2021.
Driving again (and faster): What could be the reason for drivers driving faster? According to a national survey, 1 in 10 drivers admitted to driving at least 20 miles over the speed limit, sometimes even faster than that.
Accidents: As one could probably guess, driving your car at a higher rate of speed opens the door to a more severe collision. The National Highway Traffic Safety Administration has reported a 12% increase in deadly crashes, the largest such increase since reporting began in 1975.
How to Save Money on Your Auto Insurance
Ask us about pay plan discounts: You can save up to 7% on your auto insurance, depending on which plan you choose.
Get the ERIE Rate Lock feature: ERIE Rate Lock allows you to pay the same premium year after year, even if you file a claim. Your rates will only change if you add more remove a driver to your policy, or if you change addresses.
Consider increasing your deductible: Carrying a higher deductible will lower your auto insurance premium.
Take a look at your mileage: Are you working from home a lot more and driving less than before the COVID-19 pandemic? Based on your annual miles driven, you may be eligible for lower rates.
Bundle your coverage: If you have multiple policies with ERIE Insurance, you can earn a multi-policy discount when you combine your auto, home, or life insurance policies.