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Some of the reasons your car insurance will likely go up

The cost of owning a car is going up for many drivers for various reasons, from replacement parts to insurance.

INDIANAPOLIS — It's a good news-bad news situation when it comes to auto insurance in the Hoosier State.

The good news: Indiana is the 15th cheapest state, according to Bankrate. The average annual premium is $1,242, around $500 less that the national average.

The life events that will significantly increase the cost are (added cost annually in parenthesis):

  • Credit score decreased from "good" to "poor ($771)
  • Received a speeding ticket ($301)
  • Caused a car accident ($550)
  • Had a lapse in auto insurance coverage ($152)
  • Convicted of a DUI ($1,013)
  • Insured a teenage driver ($1,411)

The bad news is you might see a rate hike at renewal time.

"A report from S&P Global Market Intelligence shows that a lot of these premiums have increased from anywhere from around three to 12%," said Sarah Foster with Bankrate. 

Foster added that there are a few reasons for this.

"I think the major reason why insurance premiums are going up kind of comes back to the inflation picture, where it's simply just getting to be more expensive to repair a car," Foster said. 

Think supply chain issues. 

"Lots of manufacturing plants have closed nationwide. There's a labor shortage. The manufacturing of chips and parts, and all these other things that are necessary to manufacture these newer cars," Foster said. 

Car replacement part cost

The smarter the car part, the more it will cost to replace.

Here are the additional costs of repairing certain safety features in newer models that contain Advanced Driver Assistance Systems (ADAS) according to the Insurance Information Institute.

Front bumper
Basic bumper repair: $700 to $1,800
Sensor and camera replacement(s): +$500 to $1,900
Recalibration: +$250 to $600

Headlights and taillights
Halogen assemblies: $200 to $500
LED assemblies: $750 to $1,500
Recalibration: +$100 to $250

Windshield replacement
Regular windshield: $300 to $500
ADAS-capable windshield: $700 to $1,500
Sensor and camera replacement(s): +$800 to $1,900
Recalibration: +$250

Rear bumper
Basic bumper repair: $700 to $1,800
Sensor and camera replacement(s): +$1,000 to $2,500
Recalibration: +$250 and up

Side mirror replacement
Standard mirrors: $300 to $500
Mirrors with ADAS: $1,000 to $2,500
Recalibration: +$250 and up

Check your coverage

If you are in an accident, you'll probably need a rental car, which is still expensive.

You may also need that rental for a longer period because of part delays, so double check your coverage.

If you end up needing a replacement vehicle, the average new car transaction price topped $47,000 in December 2021.

The average price for a used car at the same time was $28,205.

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