Car insurance rates increase after parts shortages, risk assessments

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Students who pay for their car insurance have noticed an increase in their rates and were unsure why. 

One of many factors that State Farm agent Kim Jasperson said affected policies was the beginning of the pandemic when more people were working from home and driving less.

This caused insurance companies to lower their rates significantly.

Now, as people are continuing to return to work and driving more, rates must be adjusted again. Jasperson said rates are also affected by other costs insurance companies need to cover.

“It’s taking a longer period of time to get vehicles repaired, which means we’re keeping people in rental cars longer,” said Jasperson. “They’re out of their vehicles; we are paying higher body shop rates because we have to pay high shipping rates to get them in.”

Jasperson said now it is more difficult to locate parts for vehicle repairs and get them shipped. As a result, insurance companies may end up totaling vehicles if they can’t get the parts they need.

Companies are now readdressing the issues and risks and adjusting insurance rates as needed.

“Now, we are going through substantial rate increases nationwide and statewide,” said Jasperson.

Insurance rates may vary for different policyholders since a variety of factors are considered. The year, make and model of the car — as well as a person’s driving experience and accident history — are all taken into consideration.

Luckily, many companies have different discounts and ways to make insurance rates a little more manageable. 

Jasperson advises students to keep their grades up, keep their eyes on the road and keep at a safe distance in order to keep their rates low. 

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