In case you wondered why auto and home insurance rates increase when your car is older and you haven’t had an accident…
- We all know that miles driven on US roads dropped dramatically last year. In 2021, the rebound has been equally dramatic – returning to about 94% of the pre-COVID peak and continuing to increase.
- The percentage of crashes with airbag deployment or non-drivable vehicles is the highest it’s been in 5 years suggesting more higher speed crashes are occurring.
- Average vehicle repair costs are up over 30% in the past five years, with a good bit of that increase coming in 2021.
- Parts availability is driving repair cycle time up, combined with the cost of parts, adding significantly to overall claim cost.
- On the property side, while lumber prices have leveled, overall inputs to residential construction were up 19% since pre-pandemic.
- In the mix as well is the steep increase of liability costs on litigated cases – which is a trend that predates the pandemic but was accelerated by it.