You may have noticed an increase in your premium. We’d like to walk you through some of the reasons why this may happen, and show you how you can get the most out of your RACV Membership.
The insurance industry is experiencing challenging market conditions, which has had a knock-on effect for insurance costs. Let’s look at some of the major reasons for the increase:
Repair and replace costs
Higher than average inflation, combined with worldwide shipping delays and material shortages have increased the costs of car repairs and replacements. New and second-hand vehicles, as well as spare parts, are difficult to get a hold of and more expensive for everyone.
Skilled repairer shortage
Following on from COVID-19, Australia continues to face a shortage of skilled repairers. This means that car repairers are harder to find and book, making repair and labour costs more expensive.
Extreme weather events
Weather events like bushfires, floods and storms are happening more frequently and severely. This increases the level of insurance risk alongside rising costs associated with managing claims.