Driving Through Delays: How the Global Parts Shortage Impacts Your Auto Insurance

The open road beckons, but the global parts shortage is putting the brakes on timely car repairs.

As your trusted insurance advisor, we want to keep you informed about this industry-wide challenge and empower you to navigate potential vehicle downtime.

What’s Fuelling the Parts Shortage?

This isn’t just a simple case of low inventory. A perfect storm of factors has converged to create a bottleneck in the auto parts supply chain:

• Semiconductor Chip Crunch: The global shortage of these essential tech components has hit car manufacturers hard, forcing them to prioritize new vehicle production over spare parts.
  
  
• Price Hikes: The cost of raw materials and manufacturing has skyrocketed, leading to significantly higher prices for even basic car parts.
  
  
• Shipping & Supply Chain Chaos: Remember the days of pandemic-related delays? They haven’t gone away entirely. Congested shipping routes, factory closures, and geopolitical instability (like the situation in Ukraine) continue to disrupt the flow of goods, including car parts.
  
  
• Global Interdependence: The auto industry relies on a complex web of suppliers across the globe. When one region experiences disruptions (like China, the Middle East, or Europe), the ripple effects are felt worldwide.

Steering Clear of Downtime: What You Can Do

While we’re all eager for the situation to improve, it’s essential to be prepared. Here’s how you can navigate potential vehicle downtime:

• Review Your Car Hire Coverage: Now is the time to dust off that policy document and confirm your car hire (rental) coverage details. Do you have it? What are the limits? Understanding your coverage is key.
  
  
• Plan Ahead for Repairs: Don’t wait until the last minute! If your car needs repairs, contact your insurer and your preferred repair shop as early as possible. Pre-arranging repairs and coordinating with parts availability can help you avoid exceeding your car hire coverage period.
  
  
• Understand Your Policy Limits: Familiarize yourself with any limitations on your car hire benefit, such as the maximum number of days or the daily rental allowance. This will help you avoid unexpected out-of-pocket expenses.
  
  
• Stay Informed: Keep an eye out for updates from your insurer and stay informed about the latest developments in the parts shortage. Knowledge is power when it comes to navigating this challenging situation.

Navigating the Road Together

At Genesis, we’re committed to guiding you through uncertain times. We’re actively working with our industry partners to streamline claims processes and minimise repair delays whenever possible.

Remember: Even with delays, it’s crucial to report any accidents or damage to your vehicle promptly and comply with the notification period outlined in your policy.

We’re here to answer your questions and provide support every step of the way. Contact us today to discuss your coverage or get help with a claim.