How do Supply Chain Issues Affect Your Car Insurance?

Beige Tan Minimalist Company PresentationIntroduction
The COVID-19 pandemic has put immense pressure on global supply chains since 2020. While many sectors of the economy have recovered from the sudden downturn, the automotive industry is still feeling its effects.
New cars and specialized auto parts are harder to find and more expensive than before, causing problems for car manufacturers, drivers and insurers.
You may be affected in several ways if you have to make a car insurance claim in the near future.
Finding a replacement vehicle is going to be a lot more difficult if your insurer deems your car a write-off.
If you need to upgrade to a new model of the same make as your car, you may experience sticker shock when looking for a new car. The price of new vehicles has increased significantly due to shortages in supply and the costs of commodities used to build cars like steel.
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If your vehicle needs repairs, your car may be in the shop for a long period of time as it will take longer for the necessary parts and materials to arrive.
If your car insurance policy includes transport replacement coverage, the rental costs are covered when you're stuck without a car. Contact your insurance broker to find out what is covered under your policy so you know what to expect.