Posted by DSD Insurance an Acrisure Agency Partner on
USED VEHICLE COSTS ARE SOARING
Demand for used cars is higher than it’s been in a long time. Why? New auto sales are down 13% due to supply chain issues and the price increases that make it feel like you need a second mortgage to buy a new (or, used) vehicle.
In Q3 2021 vs. 2020 has led to a 50% price jump for used cars in Oct ’21 vs. Q1 ’20, impacting total loss payouts.²
The Cost to repair vehicles is up. The average cost per part is at least 65% higher than 2021.³
SKILLED MECHANICS SHORTAGE
The number of skilled vehicle technicians is decreasing. As a result, it’s more difficult and costlier to recruit, train and retain talented service people.
BODILY INJURY CLAIM COSTS
Bodily injury claim costs are on the rise. Approximately 7% increase in treatment costs in 2021 on top of a 6% rise in 2020 suggests this isn’t going away anytime soon.