Automobile Accidents, Supply Chain Shortages, and Your Claim


Automobile Accidents, Supply Chain Shortages, and Your Claim

The pandemic has impacted the supply chain for almost every product on the planet, and auto parts are no different! There is an unprecedented shortage of parts, which affects the global supply chain, causing auto repairs to take longer than normal. What does this mean?

  • The parts available to repair your vehicle cost more.
  • The labor shortage (i.e. manpower to repair your vehicle) also increases the cost to make repairs.
  • Your car’s value is more likely to be less than the cost to fix it, even if the damages aren’t as severe.

As an insurance agent, a vehicle is considered “totaled” or a “total loss” when the cost to repair your vehicle is 70% or greater than what your vehicle is currently worth, or the damages exceed a state-mandated threshold.

As it stands now, it’s quite difficult to find replacement vehicles for sale at a reasonable price if totaled.

More things to consider:

If your car isn’t totaled and needs repairs, your auto insurance may cover a rental car to use while your car is being fixed. However, rental cars are also scarce since fewer cars are being produced. So, if you find yourself in a position of needing a rental vehicle, be sure to reach out to rental companies as soon as you can and be open to the options available.  A model similar to your vehicle may not be in stock.  We strongly suggest you increase your rental car coverage to the maximum available if you do not have access to an additional car to drive. Most people have a limit of around $30 a day with a maximum amount of $900. You can increase that to $50 a day with a maximum amount of $1,500 and choose the smallest/most affordable rental car available to stretch the amount of time you have that vehicle.

We hope you never have to experience an accident that requires repairs or totals your car. If you find yourself in this position, the agents at Widener are here to help you through the process.