GREENSBORO, N.C. — Fifty dollars, a hundred, maybe a couple thousand. It doesn't matter the exact increase you've seen in your car insurance premiums, any amount can throw your budget off.
But why are you seeing an increase? We talked to Christopher Cook with Alliance Insurance Services to find out why.
More claims
Cook said that the amount of car insurance claims being made is on the rise.
"We've started driving again after COVID, but also we're not paying very good attention to the road," said Cook. "Our phones distract us more than anything else."
He said another reason for the rise in insurance claims is recent catastrophic storms and severe weather.
Cost of repairs
Cook said the cost of repairs when a claim is made has drastically increased.
"The things that it takes to fix your car are more expensive today," said Cook. "It's all across the board. Good drivers and bad drivers."
Those increased costs are driven by inflation and lingering supply chain problems. If a car is in need of one part that's not in stock, and is delayed due to supply chain issues, it could be months before it's fixed.
Are you covered?
Comprehensive coverage isn't automatic unless you have a new car or a car loan. Auto insurance has several components.
Liability coverage
This is when you get into a crash. Liability covers bodily injury or property damage to other drivers, this is required in NC.
Collision coverage
This covers the actual crash damage to the car, this is required too in NC.
Comprehensive coverage
This covers theft, damage to your auto due to theft, a break-in, a falling tree, and ice. This coverage is not required on all vehicles.
If you don't have it, you're out of luck. You'll be paying for any damages out of your own pocket and thanks to inflation and supply chain issues, you could be paying 20% more for parts not to mention waiting longer for the parts to come in.
