--- description: . Because of the pandemic, global supply chains have faced unprecedented logistical challenges. The auto industry has not been an exception title: How Covid-19 Supply Chain Disruption Impacts Car Insurance Rates - Fran Haasch Law Group --- How Covid-19 Supply Chain Disruption Impacts Car Insurance Rates - Fran Haasch Law Group [Home](https://www.lawfran.com/) » [Car Accident Lawyers](https://www.lawfran.com/car-accident-lawyers/) » How Covid-19 Supply Chain Disruption Impacts Your Car Insurance Rates # How Covid-19 Supply Chain Disruption Impacts Your Car Insurance Rates Last Updated: October 16, 2025 Reading Time: 6 minutes trusted Content Legally Reviewed by: Fran Haasch Updated 8 months ago Table of Contents Our Case results $1,800,000 Car Accidents $1,800,000 Car Accidents $1,550,000 Car Accidents $1,350,000 Car Accidents $1,345,750 Car Accidents $1,300,000 Car Accidents $1,300,000 Car Accidents $1,025,000 Car Accidents $1,025,000 Car Accidents $1,000,000 Car Accidents $1,000,000 Car Accidents $1,000,000 Car Accidents $1,000,000 Car Accidents $895,000 Car Accidents $800,000 Car Accidents $750,000 Car Accidents $750,000 Car Accidents $750,000 Car Accidents $700,000 Car Accidents $700,000 Car Accidents View All Results Our Practice Areas Testimonials Extremely attentive and considerate. Highly recommend them. When I got in my car accident they kept me up to date with everything didn’t have to be on top of them. Very professional. Thank you guys for all you help me with. Julie Rodriguez I was in a car accident a few years ago, they helped me through the process .Very professional and very generous toward the different charities that they help. I've gotten to know a lot of good people throughout the years that are affiliated with them. Thomas Scharf Attorney Fran Haasch was great in helping me with my medical bills and settling my case! They really cared about me and my family. I recommend them, if you have injuries from an automobile accident. Sofia Beshara Contact Us Today Free Consultation Call us Anytime 24/7 (727) 784-8191 EmailThis field is for validation purposes and should be left unchanged.Name(Required) First Last Email Phone(Required)Are You a New Client?Are You a New Client?Yes, I am a potential new client.No, I am a current existing client.I'm neither.Case Details(Required)Communication Consent I consent to receive calls and emails from Fran Haasch Law Group Accident & Injury Lawyers, including via automated technology, AI-assisted systems, and prerecorded messages, regarding my inquiry and related legal services. Consent is not a condition of services. [Disclaimer](https://www.lawfran.com/disclaimer-and-terms-of-use/) | [Privacy Policy](https://www.lawfran.com/privacy-policy/)SMS/Text Message Consent I consent to receive text messages from Fran Haasch Law Group Accident & Injury Lawyers at the phone number provided, including messages regarding my inquiry, case updates, and appointment reminders. Frequency may vary. Message & data rates may apply. Text HELP for assistance, reply STOP to opt out. Δ It’s no secret that the Covid-19 pandemic is having a significant impact on businesses worldwide. Because of the pandemic, global supply chains have faced unprecedented logistical challenges. Shipping lanes have been disrupted, there are labor shortages, and even as demand increases, materials and inventory have significantly decreased. Every sector of the economy is suffering from a lack of economic growth, most notably the automotive industry. Auto insurance costs are going up, repair costs and wait times are increasing, and used-car prices continue to rise. As a result of these issues, insurance companies are struggling to keep up with the demand for repairs and replacements, and they’re passing those costs on to consumers in the form of higher rates. ## COVID-19’s Impact on the Supply Chain One of the most significant ways Covid-19 has impacted the automotive industry is through the supply chain. The pandemic has caused considerable disruption in the flow of goods, including raw materials and finished goods. Many businesses have had to adjust their operations to comply with government guidelines, which has led to delays in shipping and a shortage of car parts. This has resulted in higher costs for businesses, causing emptier dealer lots, increased used-car prices, and slim pickings for new-car incentives, which have transferred to consumers. ### Labor Shortages The pandemic has led to widespread illness and death, leaving many businesses without enough staff to operate. This is especially true in the automotive industry, where there is a high demand for skilled workers. According to the [Bureau of Labor Statistics](https://www.bls.gov/news.release/jolts.nr0.htm), as of Feburary 2022, 6.1 million U.S. workers have separated from their jobs. As a result, fewer people are available to work on cars, drive trucks that transport parts, and warehouse workers. The shortage of workers has led to increased labor expenses, which are then passed on to consumers through higher costs. In addition, the lack of workers has also caused delays in the production of vehicles and an increase in wait times for repairs. ### Low Inventory and High Demand Due to shipping times and a decrease in labor, the pandemic has caused a decline in the production of vehicles, which has led to a reduction in inventory. At the same time, there is an increase in demand for vehicles as people return to using their cars. This combination of factors has led to an increase in used-car prices and a decrease in new-car incentives. In some cases, people are paying double or even triple the amount for a used car that they would have just a few months ago. It has also led to longer wait times for repairs and increased labor costs. ### The “Arousal Breakout” Even as Americans drove less [due to the pandemic](https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813115), in 2020, the National Highway Traffic Safety Administration estimated that[ 38,680 people were killed](https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813115) on U.S. roadways. This is the highest number recorded since 2007 and came when Americans drove 13% fewer miles than in 2019. According to the NHTSA’s data, the primary behaviors that caused the increase included impaired driving, speeding, and failure to wear a seatbelt.  As consumers drive their cars more,[ car accident numbers increase](https://www.lawfran.com/blog/2021/10/car-accidents-the-other-epidemic-america-has-been-sleeping-on/), leading to more repairs. Repair times have significantly increased because of parts shortages, low inventory, and labor shortages. ## What This Means For You As a result of all these factors, [insurance rates are rising](https://www.lawfran.com/car-accident-lawyers/why-is-car-insurance-so-expensive/). If you’re in the market for a new car, you can expect to pay more as dealer inventories remain low and used-car prices continue to increase. And if you get into an accident, be prepared for[ longer wait times](https://www.lawfran.com/car-accident-lawyers/how-long-does-a-settlement-take-in-florida/) and higher repair costs. ### Longer Repair Times Car owners are either being priced out of buying a car or can’t find the right vehicle due to the inventory, causing them to hold onto their current vehicle, which has sparked a rise in demand for repair and maintenance services. According to an IMR 2021 survey, the average vehicle turnaround time has increased by a day and a half since the pandemic began. The causes of the disruptions ranged from delays in parts deliveries and distribution to shortages of drivers and qualified technicians. In Jacksonville, Florida, Robert Gutierrez, the co-owner of Victor’s Body Shop, told News4Jax, that the shortage in parts “can prolong the repair a week or two depending on when we actually receive the parts.” As repair times increase, so do the costs. Shops are overwhelmed with work as they continue to wait longer for parts and suffer from a workforce shortage. ### Increase in Insurance Rates According to Insurify, the average national cost to insure a car is expected to jump 5% from $1,663 to $1,707 in 2022. The shortage in car parts for damaged vehicles also leads to higher claim payouts. Auto insurers are attempting to offset costs with inflation, COVID-19 supply chain issues, an “arousal breakout” causing more severe and frequent accidents, and slow vehicle production with increased demand. Unfortunately, this means insurance prices rise, and finding affordable rates may be more challenging. ## Florida Insurance Requirements According to the[ Zebra](https://www.thezebra.com/about/press/covid-19-relief-ends-car-insurance-rates-back-on-the-rise/), at $2,425, Florida is the third most expensive state for insurance rates. Unfortunately, there’s no way to avoid paying for car insurance. [Florida drivers must show proof](https://www.lawfran.com/car-accident-lawyers/florida-car-insurance-laws/) of two types of car insurance before they [register their vehicles](https://www.lawfran.com/car-accident-lawyers/do-you-need-insurance-to-register-a-car-in-florida/). - **[Personal Injury Protection Insurance Coverage](https://www.lawfran.com/car-accident-lawyers/what-is-personal-injury-protection-insurance/) (PIP)** covers 80% of your medical expenses and lost wages up to $10,000 regardless of who was at fault for the accident. - **[Property Damage Liability Insurance Coverage](https://www.lawfran.com/car-accident-lawyers/property-damage-liability-insurance/) (PDL)** pays for the damage to another driver’s vehicle or someone else driving your vehicle up to your policy limit. ## What You Can Do to Save Money You can do a few things to help offset the increased cost of car insurance. Here are a few tips: - Shop around for the best deal: Rates will vary from company to company, so it’s important to shop around and compare rates before you choose an insurer. - Ask about discounts: Many insurers offer discounts for safe drivers, students, and more. Be sure to ask about any discounts you may be eligible for. - Bundle your policies: You can often save money by bundling your car insurance with other types of insurance, such as homeowners’ or renters’ insurance. - Plan Ahead: One of the best ways to save money is to plan for routine maintenance and keep a budget for unexpected repairs. This is especially important for older cars that may not be covered under a warranty. - Go to a repair shop you’re familiar with: With repair shops being busier than ever, it may help to stick to getting repairs from a shop where you’re an established client. ### Optional Coverage Options Although not recommended, you can save money by opting out of coverage or dropping coverage for older cars. Such as: - [Comprehensive Auto Coverage](https://www.lawfran.com/car-accident-lawyers/what-is-comprehensive-insurance/) – Comprehensive coverage is insurance that covers damages to your car that are not caused by an accident. This can include damage from weather, theft, vandalism, or glass breakage. Comprehensive auto coverage is not required in Florida, but it is recommended. - [Collision Coverage](https://www.lawfran.com/car-accident-lawyers/collision-insurance/) – Collision coverage is insurance that covers damages to your car from an accident. This can include hitting another car, hitting a stationary object, or flipping your car. - [Uninsured/Underinsured Motorist Coverage](https://www.lawfran.com/car-accident-lawyers/underinsured-uninsured-motorists/) – Uninsured/Underinsured Motorist (UM/UIM) coverage is insurance that covers damages to your car from an accident caused by a driver who does not have insurance or does not have enough insurance. [We highly recommend](https://www.lawfran.com/car-accident-lawyers/do-you-need-uninsured-motorist-coverage/) not dropping UM/UIM coverage as a cost-cutting measure. ### **Avoid Car Accidents** A factor that could further increase your rates is car accidents. Here are a few tips to [avoid car accidents](https://www.lawfran.com/car-accident-lawyers/how-to-avoid-car-accidents/): - Obey the speed limit: [Speeding](https://www.lawfran.com/car-accident-lawyers/speeding-accidents/) is one of the leading causes of car accidents. By obeying the speed limit, you can help avoid an accident. - [Don’t drink and drive](https://www.lawfran.com/car-accident-lawyers/drunk-driving-accidents/): Drinking and driving is a leading cause of car accidents. If you’re going to drink, be sure to have a designated driver. - [Avoid distractions](https://www.lawfran.com/car-accident-lawyers/distracted-driving-accidents/): Distractions like talking on the phone or [texting](https://www.lawfran.com/car-accident-lawyers/texting-and-driving/) can lead to accidents. Be sure to stay focused on the road when you’re driving. You can help avoid an accident and save money on your car insurance by following these tips. ## **Contact an Experienced Car Accident Attorney** At The [Fran Haasch Law Group](https://www.lawfran.com/), we are committed to fighting for your fair recovery. We strive to help injured individuals and the loved ones of those wrongfully killed, secure the full, fair recovery they are owed. We offer dedicated legal representation for [car accident](https://www.lawfran.com/car-accident-lawyers/) victims and bicycle, [rideshare](https://www.lawfran.com/car-accident-lawyers/rideshare-accidents/), and semi-truck accidents victims. If you feel you have been the victim of a car accident through no fault of your own. Our attorneys are prepared to help you navigate the legal process and work toward securing the maximum compensation you are owed. Call (727) 784-8191 or[ contact us online](https://www.lawfran.com/contact-us/) to get started on receiving maximum compensation for your personal injury case. INJURED IN FLORIDA? The Fran Haasch Law Group Is Here for You. Whether you’ve been hurt in a [motorcycle crash](https://www.lawfran.com/motorcycle-accident-lawyers/), [car accident](https://www.lawfran.com/car-accident-lawyers/), [truck collision](https://www.lawfran.com/truck-accident-lawyers/), or another serious incident, you deserve strong legal representation. Our experienced Florida [personal injury attorneys](https://www.lawfran.com/palm-harbor-personal-injury-lawyers/) will fight to protect your rights and help you recover the compensation you need. Schedule Your Free Consultation Share this page Find an Office Near You Our Car Accident Locations At Fran Haasch Law Group Accident & Injury Lawyers, we’re proud to serve clients throughout the greater Tampa Bay area and beyond. With multiple offices across the region, our team is dedicated to making it easy for you to access experienced legal help close to home. Select a location below to learn more about the services available near you. Meet Our Attorneys ## Francoise M. Haasch Founding Attorney Over 20 Years Experience Personal Injury Car Accidents Motorcycle Accidents Lifetime Member Known for extensive trial experience and consistent client advocacy across complex injury cases. Meet Francoise M. Haasch ## Joshua R. Lipton Managing Attorney Over 20 Years Experience Personal Injury Car Accidents Motorcycle Accidents Recognized for consistent results and strong client advocacy in complex accident cases. Meet Joshua R. Lipton ## David R. Fuller Attorney Over 30 Years Experience Personal Injury Litigation Secured more than a dozen seven-figure settlements for clients. Meet David R. Fuller ## Allen J. Pipkins II Attorney Over 10 Years Experiece Personal Injury Wrongful Death Motorcycle Accidents Combines experience from both plaintiff-side injury firms and large insurance companies. Meet Allen J. Pipkins II ## Laura Smith Davies Attorney (Of Counsel) Almost 20 Years Experiece Personal Injury Wrongful Death Motorcycle Accidents Known for her versatile trial experience and leadership roles across multiple legal disciplines. Meet Laura Smith Davies Related Content Want to learn more about car accidents? Whether its how to prevent them or what to do once you’ve been in one, [our blog](https://www.lawfran.com/blog/) can help you gather the knowledge and information you need. Types of Car Accidents How Medical Bills Are Paid After a Car Accident in Florida Shoulder Pain After a Car Accident Chest Pain After a Car Accident Internal Bleeding From A Car Accident Shock After a Car Accident Can Whiplash Cause Dizziness Dealing with Allstate Auto Insurance Claims How Do I Get Reimbursed for Lost Wages and Medical Expenses After an Auto Accident? May 8, 2022 An auto accident can cause you to suffer serious injuries that might require medical treatment, including surgery, rehabilitation, and prescription medication. In some cases, the Read Full Post » What About My Rental Car? May 8, 2022 Was your vehicle severely damaged in an auto accident? Are you wondering who is going to pay for your rental car? If you require a Read Full Post » What Happens When Medicine Causes a Car Accident? May 8, 2022 According to the Governors Highway Safety Association, 43.6 percent of fatally injured drivers in 2016 tested positive for drugs, and over half of those drivers Read Full Post » ## Contact Us Today (727) 784-8191 Our experienced attorneys are here to help you navigate your legal rights with confidence. NameThis field is for validation purposes and should be left unchanged.Name(Required) First Last Email Phone(Required)Are You a New Client?Are You a New Client?Yes, I am a potential new client.No, I am a current existing client.I'm neither.Case Details(Required)Communication Consent I consent to receive calls and emails from Fran Haasch Law Group Accident & Injury Lawyers, including via automated technology, AI-assisted systems, and prerecorded messages, regarding my inquiry and related legal services. Consent is not a condition of services. 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