An uptick in thefts
Thefts remained on the rise in the first half of 2023 – up 2% compared to the first half of 2022. That's after over one million vehicles were stolen in the U.S. in 2022, the highest since 2008, with a 7% year-over-year increase.
The UAW strike
Based on past events, the fall 2023 auto workers strike may lead to longer cycle times and non-OEM part price increases. In fact, on this side of the 2023 strike, Ford has already said that the deal struck with workers will eventually add $850 to $1,000 to a new car.
Another rise in vehicle repair costs
After double-digit vehicle repair cost increases in 2021 and 2022, 2023 saw a modest 4.6% increase through Q2 in 2023. Yes, it's a better increase, but it is passed on to consumers nonetheless.
Limited inventory
If you've noticed limited inventories when car shopping – that's impacting insurance, too. Limited availability inflates car values and, subsequently, insurance premiums.
Higher vehicle replacement costs
Vehicle replacement costs soared nearly 45% between 2020 and 2023, outpacing inflation by roughly 30%. This upward trend will continue to impact the cost of comprehensive and collision coverage in your auto policy.
Severe weather
Natural disasters cost insurance companies millions in losses. Insurance companies increase premiums in the ensuing years to make up for these losses.
Higher medical expenses
Medical costs are also on the rise. For auto insurers, that means higher payouts for bodily injury liability claims and, again, higher premiums for auto owners.