Written by Kristen Juracek, CISR
Oh, the pain of auto rates right now. I know, really, I know. Not only is it effecting you but its effecting me too in my professional and my personal life, you would think since I work in this world that I would get some sort of break but that is far from the case. Like cant I even get an employee discount?! Ok lets take a sip of coffee and settle down (it’s almost St. Patty’s Day so maybe some Irish Koffee today 😉), it’s time for a little Koffee with Kristen. Que music, background and…
Let’s talk about the elephant in the room or shall I say this ugly word “inflation” and why you are seeing these crazy increases. There are a number of reasons increases are happening but one of the main reasons are parts: we don’t have them and we can’t get them for a long time. So what does that mean for you? Well, if you are in an accident, you’re now waiting longer for your vehicle to get fixed leading to more money going out for your rental car. Maybe the shop gets your part after 6 months but that part is now 3x the price it used to be because the price to deliver that part has gone up and so has the labor to install it, you get my drift.
So to fix this issue, the insurance companies have decided to just total out many vehicles in this situation because it ultimately will costs less in the long run. On average, the insurance companies are paying more for auto accident now then they ever have in the past let’s say 5 years and unfortunately even if you don’t have a claim, we all pay into a big pot to take care of each other. I know you don’t want to hear that but, what if you had a $30,000 claim? Have you paid enough money to your insurance company to cover that? If not would you expect the company to still pay you that $30,000? We all need to pay into the pot and we all effect each other.
Our world is just in a crazy crazy spot right now, it’s like we’re in permanent retrograde on steroids. I know we all hate paying for something we cant see, it’s the absolute worst, but as history tells us we do heal and we do bounce back. I can’t tell you when (hopefully soon because my boujee coffee is getting expensive 😉) but we are in this together, I promise! Well, I’m down to my last sip, enjoy your day.