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Domino Effect On Car Insurance Claims Leads To Delays At The Body Shop

By December 18, 2021December 27th, 2021Car Insurance, Personal Insurance

There have been a lot of car insurance claims in Pennsylvania this fall and early winter and that has caused a few issues. A domino effect can be seen as more car accidents and vehicle incidents have created more and more claims. As these car insurance claims increase, there are more and more body shop appointments. As the body shops fill up, the rental car shops are empty. As more vehicles are totaled, more vehicles are purchased.

This domino effect continues and will have large implications on car insurance in 2022 and the price of vehicles in 2022. Learn about the cause and effect of this series of events, and more importantly, learn how it will impact you in 2022.

The First Domino: Increased Car Accidents In 2021

There has been a record-breaking increase in accidents and in accident deaths in the first six months of 2021. This is just one of the reverberating ripples felt from Covid-19. How has Covid-19 contributed to the increase in vehicle accidents in the United States? There are multiple factors.

First, the large increase is tied to the lack of drivers on the road in 2020 during the shutdown. Additionally, there is a likelihood that a lot of these drivers that are back on the road are a bit rusty. The number of people who were working from home led to a lack of driving and people can get rusty.

Second, after government offices opened back up it is likely a large number of student drivers passed with more lenient drivers tests due to a large number of driver tests. Before the pandemic, the DMV was backed up with students drivers waiting to get their drivers licenses. So the first two factors are added inexperienced drivers on the road.

Third, a larger number of people took up outdoor activities. More inexperienced hunters lead to fewer deer being hunted and maintained during the regular hunting seasons. In Pennsylvania, there are a large number of hunters, but a restricted number of deer tags. With more hunters purchasing tags this means less experienced hunters are holding more of the deer tags that manage the deer population. As the deer population increases, the number of accidents involving deer increases.

The Following Dominos: What Does This Cause?

The increase in Pennsylvania car accidents in 2021 are going to result in multiple issues that we are already starting to see. Below are a collection of issues the increased car insurance claims have resulted in.

1. Increased Car Insurance Rates For 2022

Why are your car insurance rates going up? With the increased number of accidents there is an increased cost. The way that insurance works is every driver is paying into a pool for car insurance. That pool then pays for car insurance claims and repairs. As car accidents increase, payouts increase and a larger pool is needed. To get a larger pool, increased car insurance rates are needed.

2. Increased Vehicle Prices In 2022

As a greater need for cars increases, so does the cost. You can expect to see the price of vehicles increasing. The combination of inflation and more drivers looking for cars will lead to higher car prices.

3. Increased Car Rental Prices For 2022

With the backup of vehicles in the body shop more vehicles are being rented. As rental car companies have more people renting cars over the holidays during the shortage of rental vehicles this leads to an increase in car rental prices, a lack of rental vehicles available, and a continued shortage of rental cars. As the price of rental cars increases, this is just another factor contributing to increased car insurance rates.

4. More Deer Tags Expected For 2022

Not all of the news is bad for people in Pennsylvania. PA hunters can expect an increase in doe tags for the 2022 fall season. This is a step towards fixing the issue of increased car accidents. If you drive in Pennsylvania you know there are a lot of deer. Learn what you should do if you hit a deer. As the deer population is maintained the number of accidents involving deer will level out.

Contact Strickler Insurance For Better Car Insurance Rates As Your Insurance Increases

Strickler insurance can help find some of the best car insurance rates to help save you money and manage your car insurance rates. We compare the rates of a variety of insurance companies to help find the best rate for your specific situation, vehicle, and driver history. Learn more and get a free insurance quote.