Inflation is no stranger to the car insurance market. During 2022, we are expected to see a dramatic increase in the cost of auto insurance. Factors that determine this spike in pricing include reckless driving practices, lack of inventory, and locations. Even so, It is still of utmost importance that you protect yourself and your sweet ride.
In the age of technology we all know how easy it is to be caught texting and driving. Even though 48 states now have laws against such actions people still do it every day. In some states if you get a ticket for distracted driving you can be charged with a minor moving violation resulting in an increase in your insurance. A great way to prevent yourself from making this mistake is turning your cell phone on airplane mode until you arrive to your destination. Many cars now have Bluetooth capabilities that allow you to take calls without having to pick up your phone. If you must send a text or use your cell phone trying giving your phone to the passenger and have them do it for you.
It has become well known that there is a scarcity of inventory when it comes to new and used cars for sale. What could be the reasoning for this? Semiconductor chips – The chip in your car that powers back up cameras, emergency braking systems, and power steering systems. Without it you cannot drive your car safely. The pandemic forced the companies that make these chips, like all other businesses, to shut down. Therefore, car brands were not introducing or adding any new cars to the market. The demand for cars was still high so customers started buying used cars and soon all the used car lots were nothing but ghost towns. Since quarantine has ended car production has increased but not enough to make a difference. This has proven that car insurance plays a crucial role by making sure that if your car breaks down or you get in a fender bender you’re protected. Making scavenging through the non-existent inventory… nothing but a bad dream.
A large population has decided to make big moves this year. When deciding where to settle down some of the most common things to think about are what your neighborhood is like and is the weather nice year round? The answer to these questions could very well determine the likelihood of an increase in auto insurance. Cities promote an environment that elevates the chances of you getting in an accident with a greater number of citizens on the road, stopping at more red lights, and crossing more intersections. On the contrary, more secluded areas can be targets for car theft or vandalism. Either area can give reason for increasing insurance rates. To prevent a payment spike when moving to a city try looking into other modes of transportation such as train or bike. If you’re moving to the country try installing an after-market alarm system in your car.
The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. WeInsure makes no guarantees of results from the use of this information.