The cost of auto insurance is on the rise. Why?

The cost of auto insurance is on the rise. Why?

Has your auto insurance premium gone up even though you haven't been in an accident? Be aware that several factors influence premiums and the cost to repair a car is one of them.

Statistics released by the GAA confirm this: The average cost of repairing a car after a collision has increased 32% in 10 years and is $ 4,988 in 2019.

Factors That Increase Repair Costs

One thing is clear: today's vehicles have evolved a lot and have become real computers! These technologies also have a cost when it comes to having your vehicle repaired.

Three main factors:

New technologies and electronic components in vehicle construction
New parts that did not exist ten years ago are now popular car models. We can think of cameras or blind spot sensors inserted in the front and rear bumpers; and they can be worth several hundred dollars. A simple hook-up can therefore become very expensive if these parts have to be replaced.

The marked increase in the price of replacement parts
We see that new auto parts commonly replaced in a collision, such as headlights or mirrors, have seen their price increase significantly. In 10 years, some of these parts have increased by more than 200%!

The increased cost of equipment and labor required
One does not go without the other. The arrival of more sophisticated vehicles is also influencing auto repair labor costs. These advances require, among other things, major investments in the modernization of equipment and in training.