Oklahoma drivers are feeling the negative financial impact of auto insurance inflation. A local agency said this was due to shortage issues. They explained that since there is already a shortage of supplies and vehicle inventories, inflation has caused a ripple effect on all of these factors. Owner of the Auto Insurance Center Agency in Oklahoma City. Chavez said now that they are feeling the effects of inflation, many of them have been taken by surprise. “And now they’re trying to catch up, and they’ve lost a pretty good chunk of money because of these interest rates, and they didn’t expect inflation to do what it did,” Chavez said. He explained that insurance agencies usually change their rates at least a year in advance. Now when an insurance company has to pay to replace or repair a vehicle, the cost is significantly higher than it was here in Oklahoma City a year ago. The car was totaled and needed a replacement for that vehicle. The insurance company had to pay him back. He paid $16,000 for it. The insurance company paid him $20,000,” Chavez said. Labor costs have also increased. “If you get a guy who paid a thousand dollars last year, he’ll pay another $100 or $115 for the same coverage and the same premium,” Chavez said. KOCO 5 also asked if there was a way to best prepare for the higher insurance costs and they said you could also choose a higher deductible and do your best to stay safe while driving.
Oklahoma drivers are feeling the negative financial impact of auto insurance inflation.
A local agency said this was due to shortage issues. They explained that since there are already shortages of inventories and vehicle inventories, inflation has caused a ripple effect on all of these factors.
“I’ve seen rates go up between 15 percent and 20 percent over the last year,” said Daniel Chavez, owner of the Auto Insurance Center Agency in Oklahoma City.
Chavez said now that they are feeling the effects of inflation, it has caught many of them off guard.
“And now they’re trying to catch up, and they’ve lost a pretty good chunk of money because of these interest rates, and they didn’t expect inflation to do what it did,” Chavez said.
He explained that insurance agencies usually develop their rates at least a year in advance. Now, when an insurance company has to pay for the replacement or repair of a vehicle, the cost is significantly higher than it was a year ago.
“One of our customers bought a 2016 Toyota Corolla for about $16,000 from a dealership here in Oklahoma City about eight months ago. The car was totaled and needed a replacement for this vehicle. The insurance company had to pay him back. He paid $16,000 for it. The insurance company paid him $20,000,” Chavez said.
Labor costs have also increased.
“You get a guy who paid a thousand dollars last year, he’s going to pay another $100 or $115 for the same coverage and the same premium,” Chavez said.
KOCO 5 also asked if there was a way to best prepare for the higher insurance costs, and they said you could also choose a higher deductible and do your best to stay safe while driving.