Rising Auto Insurance Rates
In recent years, the rising cost of auto insurance has affected many of us. One of the main drivers of higher insurance rates is the increasing cost of parts and labor needed to repair vehicles after an accident.
As vehicles become more advanced and sophisticated, the cost of replacing damaged parts and repairing the resulting damage has also increased. For example, the cost of replacing a single headlight on a newer model vehicle can be upwards of $700, and that's just for one small part. More complex repairs, such as replacing an engine or transmission, can easily cost into the tens of thousands of dollars.
In addition to the rising cost of parts, the labor required to complete repairs has also become more expensive. Technicians who are trained to work on newer model vehicles often require specialized training and certification, which can drive up the cost of labor.
All these factors contribute to the overall cost of repairing a vehicle after an accident, and this cost is ultimately passed on to the consumer in the form of higher auto insurance premiums.
It's important to note that auto insurance rates are not solely determined by the cost of repairs. Insurance companies also consider other factors, such as the driver's record, the type of vehicle being insured, the increasing frequency of claims activity, and the location where the vehicle is driven. However, the rising cost of parts and labor is certainly a contributing factor to the nationwide trend of increasing insurance rates.
As a consumer, it's important to be aware of these trends and to have a conversation with your agent if your rates take a sharp increase. As an independent agent, First International Insurance is uniquely positioned to be able to help you find the best option for you and sometimes the cheapest option isn’t the best. Not all insurance companies are the same and not all policies are created equally. Our main goal is, and always will be, finding you the best value for your dollar.
Products sold through First International Insurance are not a deposit, not insured by FDIC or any other government agency, not guaranteed by First International Bank & Trust, may lose value. Coverage is not bound until you have spoken to an agent.
Who is FIBT?
First International Bank & Trust (FIBT) is a full-service, family-owned, independent community bank serving a wide range of communities across North Dakota, South Dakota, Minnesota, and Arizona.