SPRINGFIELD, Mo. (KY3) – You may have noticed car insurance rates are going up.
Insurors of the Ozarks Director of Business Development Bryant Young says car chip shortages and materials have driven the cost of vehicles repairs up. Young says as insurance companies pay more for claims they have to adjust their rates down the line to increase premiums. He says some insurance companies gave COVID-19 related relief discounts because people were using their vehicles less.
”Now that people are getting back out on the road again and accidents are happening again, insurance companies are adjusting back to those pre-COVID use numbers,” Young said.
Driver Chris Baird says he’s currently looking for the best car insurance rates.
”With inflation going up it’s affecting everything from grocery bills to gas prices, everything all around,” said Baird. “It’s inevitably going to affect costs of insurance.“
”We’re going to have to see an adjustment in the rest of the supply chain issues, in the cost of cars, the cost of materials before we see a significant decrease in car insurance premiums,” said Young.
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