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Inflation: The Consumer Price Index (CPI) rose more than 7 percent compared to 2020 – the biggest increase in nearly 40 years. This means that on average, all of us are spending 7% more than we were a year ago for the same goods and services.
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Vehicle parts: The inflation we were just talking about is even higher when it comes to vehicle parts, with those prices up by closer to 10%. (Historically, an increase of 2 to 3% year over year is more typical.)
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Repair costs: Recent supply chain issues such as the car chip shortage and labor market pressures have driven up repair costs even more, by as much as 20% since 2020. Limited supplies and labor can also cause repairs to take longer, meaning customers are in rental vehicles longer—further driving up the cost of claims.
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Vehicle prices: Prices for used vehicles jumped more than 27% in 2021, according to the auto industry analysts at Edmunds. New vehicle prices are up more than 14%.
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Driving again (and faster): As driving returns to pre-pandemic levels, Americans are going faster than ever before. In a national survey commissioned by ERIE, 1 in 10 drivers admitted to driving at extreme speeds of 20 MPH or more over the speed limit.
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Accidents: It should be no surprise based on all that fast driving, but auto accidents are getting more severe, too. The National Highway Traffic Safety Administration has reported a 12% surge in fatalities, the largest increase since reporting began in 1975.
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