How Much Car Insurance is cheaper in 2023
Hey in this article we will discuss can Your car insurance get cheaper in 2023 and 2024. Let's dive in and go through the factors that have caused the rate increase, and let's see if there are pieces that we can find where your insurance may get less expensive.
I will discuss all the key points and possibilities does car insurance gets cheaper or not let's start a discussion,
In most cases, we're claiming 2023 to be one of the larger increases that we've seen in general, and there are some reasons why, which we're going to dive into right away. It sounds kind of weird, but rates have actually increased increasing since the pandemic.
And I know you're like, oh my gosh, I'm so tired of hearing about this. But it really has completely changed the way that people even drive, let alone the cost and the prices that we've given out and partially inflation.
So there's kind of a handful of things that are happening. One of the five pieces that are a major increase on your premiums is the supply chain. This was directly impacted by the pandemic because of the cost of materials.
Everyone says inflation, cost of metals, cost of things like that. But that really started because nobody could drive. When the states shut down, the whole economy stopped. And when that happened, there was no supplies going out.
The laborers to make the metal parts and whatnot weren't available because of the shutdowns. Now, when that started to turn around, the opposite happened, and there were no drivers to drive everything back and forth.
So one of the biggest pieces that we saw was the supply chain and the availability to get car parts in anything for insurance purposes. Now, is this the insurance direct problem? No, because they don't do anything with fixing and supplying the vehicles.
That's up to the shop. In their cases, they were happier to send you to a shop that you knew, because now you can blame the shop and not the insurance. Most insurances, unfortunately, have tied themselves to shops to give you a better warranty.
So if you fix it at our shop, we'll give you a guaranteed lifetime warranty, blah, blah, blah, blah, and they get a better deal at that shop for the labor. Everybody wins because you get your car fixed.
But now that everything's slowed down, they're getting more of a bad rap. So they're more eager to have you go to your own shop to find out the supply chain has completely changed the time frame that it costs to get your car fixed.
That directly impacts the second reason, which is the price of cars. The price of cars has exploded. I guarantee you, if you go online, you're going to find an e-car that you would have bought three years ago.
About ten to 20, probably even 30% more expensive used, let alone new. You can see cars on the lots where people were waiting months, and it's almost a year back to get a Tesla. So depending on the vehicle that you're looking to get, there's so much more demand for vehicles.
And that leads to the third piece, which we kind of already mentioned, which is a labor shortage. Part of that is, because of what happened there, a lot of people realize that I don't want to work the rest of my life.
When something wipes out a lot of humans off of the face of the Earth, especially because of disease or something that's almost uncontrollable, you get a different perspective. People are looking at life as, I want to do X with my life, I want to spend more time with my family, and realizing that anything could change at any time has caused a labor shortage.
Fortunately, I didn't get that feeling because insurance was like one of those you're always needed, and I actually worked more during that time, which kind of made things a little bit crazier. But I can see where you're coming from.
If I had something that drastically changed my life, if I had to go to the hospital for three weeks, and I come out of the hospital and I realize I've been working 80 hours or weeks, 90 hours, weeks, I'm not going to do that for a while.
I'm going to enjoy my family and friends and realize that life isn't just about making money and trying to move up any type of ladder. But what that did is that create a great resignation where people realize that they can work remotely.
They don't have to work in a sweatshop, they don't have to work on the line for a dealership, for car parts. They don't have to put themselves in positions where they're not comfortable or happy. And that has created that great resignation or the silent quitting situation.
It is starting to change right now. And going in a few years from now, it will come back, in my opinion. But right now, the fact that that happened from 2020, 2021, and now going into 23 and 24, that is starting to flow back into this situation that we're having as far as the shortage of vehicles, shortages of precious metals, and the availability to get them on the correct timing.
The fourth major piece that's changing our prices going forward is the number of accidents. For some reason, we can't drive anymore. I don't understand. But according to Motley Fool, they did a study and they purchased a study where we're at our 20-year high, we have had more deaths due to car accidents, vehicle-related accidents, than we have in any other year.
So coming back to driving, a lot of us bought new cars, and a lot of us got on the road. And there are a lot of younger drivers that were aged 15 hitting 16 and 17. Not that that's where they're coming from, but there's a major risk there.
