Getting behind the wheel is about to become a little more expensive. Prices could increase the price of automotive insurance by almost ten percent later this year.
Getting behind the wheel is about to become a little more expensive. Prices could increase the price of car insurance by almost 10% later this year.
It is a 25% rates snowball effect on imported cars and automotive parts. If automotive parts are more expensive or take longer to import, cars cost more time and money to repair.
Nevada has some of the country’s highest car insurance rates. It is not news engines or bodywork workshops that want to hear.
IZZY AUTO knows the effects of first -hand rates. (Sunny Tsai / Foxbusiness)
“”We cannot do a lot to survive because we still have general costs and invoices and things we have to pay, “said Eric Randolph, co -owner of Izzy’s Auto.
The Randolph store was faced with the side effects of first -hand prices.
Inflation checked a little more in April while the pricing impact is looming
“This has been many price increases, which makes us increase the prices of our customers,” said Randolph.
The higher prices are the result of a delayed effect of the original supplier.
If automotive parts are more expensive or take longer to import, cars cost more time and money to repair. (Sunny Tsai / Foxbusiness)
“You have the real supplier, then the supplier goes to the seller, then [the] The seller sells to various stores and customers, so their prices are increased. And then when he reaches the consumer, when he is there, it is about 100 to 110% markup only for stores, so that small businesses can make profits, “said Randolph.
Not only are prices higher for foreign cars, but there is also a slowdown in the supply chain.
The prices of second -hand cars have been reaching the highest level since 2023 while car rates tighten consumers
“With this vehicle we are working on, it was probably like perhaps four weeks. We were supposed to have a parking time of two to three days. We are at a reservoir of four weeks at the moment,” said Randolph.
The increase in prices of the car parts goes hand in hand with your insurance bill.
Not only are prices higher for foreign cars, but there is also a slowdown in the supply chain. (Sunny Tsai / Foxbusiness)
“When you enter an accident, your insurer must often pay to replace the automatic part. And if the automotive parts were more expensive because they come from the country, then these costs are often transmitted to consumers … The new average popular car would see about 15% in addition to what it was already going up,” said Btrann, Btrann, data journalist.
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And these higher prices could affect what people are driving.
“More people cannot afford to go out roughly and buy a car, so they have to depend on the rental services,” said Deandre Johnson, owner of JS Roalare Rentals.
JS Rentals Rentals recently experienced a greater demand for companies. (Sunny Tsai / Foxbusiness)
Even if Johnson’s car rental company also deals with long expectations and higher prices for the parts, the store has in fact experienced business request.
“It made us have more customers. He also led, as I said, it led our business, the evaluation, so our company is automatically worth more now because the prices of the cars are up,” said Johnson.
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Insurance experts say that insurance companies cannot increase rates overnight and that most consumers will not notice changes in their invoices before the end of the year at the earliest.
