July 2022 PIANC News

Over a year ago, right at the beginning of the COVID pandemic, I had the unfortunate pleasure of having my parked car rear-ended by a distracted driver.  I called the police and wrecker and they came out to retrieve both vehicles.  I’m not sure of the final disposition of his car, but I think it was totaled, but that’s beside the point.  The body shop did an evaluation and determined there was approximately $15,000 damage done, to include a new axle.  The other driver’s insurance did a good job of managing the claim (direct writer), but I don’t think they could have foreseen how this claim would have resulted for them.

The body shop ordered the parts necessary and the other driver’s insurance arranged for a like-kind rental car.  Little did anyone know; I’d be with that rental car for over 3 months.  You see – there wasn’t a new axle to be found.  No new production because of plant shut downs and once they did start production back, it was for a limited time before they started the next year-model production, which meant a used axle was the only thing they could find.  It took 3 months to repair a vehicle that should have taken a week or two.

COVID and staffing has caused so many supply chain issues and still does.  Fewer new vehicles on the lot, increased costs of vehicles, means people keep their cars longer and need more repairs.  There’s a parts shortage for some parts.  The cost to repair is up because of inflation caused by many different factors.  Fuel costs are up.  Me having that rental car was an unforeseen expense – I think that rental car bill was approximately $3,000- thus increasing the cost of that claim.  Our insureds most definitely feel the pressure of these increased expenses and in some cases cannot stay open in business as operating costs have increase substantially, but the amount of money they can move their product for stays the same or even decreases.  Some of my contractor insureds are having banner years this and last year as more construction is happening.   As claim costs increase, so will premiums.  The economy has definitely affected many people and still continues to do so.