It's no secret that global supply chains have been under pressure since 2020 because of the COVID-19 pandemic. While many manufacturers have since bounced back, the automotive industry continues to see the effects. As a result, new vehicles and specific car parts aren't as readily available as they used to be, which can present issues for drivers and insurers alike when it's time to make a car insurance claim.
While the onset of the pandemic led to temporary automotive plant closures in early 2020, other factors continue to contribute to ongoing supply chain issues in the auto industry today. One of those factors is a global shortage of semiconductor chips.
A semiconductor chip, also known as a microchip, plays an important role in many modern vehicles. New models of cars and trucks are equipped with infotainment systems and safety features that simply can't function without semiconductor chips. Pandemic-related auto plant closures and an increase in demand for electronics that contain semiconductor chips, among other issues, have contributed to shortages of this essential item. As a result of the semiconductor chip shortage, vehicle manufacturers are unable to release new vehicles to dealerships quickly enough to keep up with demand.
The auto parts and repair industries are facing challenges, too. The price of steel and other materials has spiked during the pandemic, delays in transportation has led to a shortage of parts, and many workplaces are still dealing with workforce shortages. As a result of these challenges, vehicle parts aren't coming in as quickly as they used to, they're much more expensive, and auto shops may not always have the manpower they need to complete prompt repairs.
If you have to make a car insurance claim, you could feel the effects of these supply chain disruptions in a variety of ways:
If you are covered for transportation replacement under your car insurance policy, you'll be covered for the cost of a rental while you're stuck without your vehicle. However, most car insurance policies have a limit on how many days you can keep a rental. Reach out to find out how many days of rental car coverage are included in your policy and what will happen if you're stuck without your vehicle for longer than your coverage allows.
Now more than ever, it's important to keep safety in mind on the road — not only to protect yourself, but also to avoid ending up in a situation that leaves your car damaged and in need of repair or replacement.
Learn how you can stay safe on the road to minimize your chances of an accident:
If you've recently been involved in a collision and have questions about the claims process or how you might be affected by supply chain issues, reach out today.
With thanks to Economical Insurance for their editorial contribution.