Posted on 01/30/2024 6:35:48 AM PST by dennisw
My car insurance just went up 32%. Did I have an accident or get a few tickets? Nope. Since 2020, car insurance rates in the U.S. have risen by a whopping 37%. The main reason? High-tech vehicles — aka anything remotely new — cost way more to repair. And you don’t need to have a high-tech car to feel the pinch. It’s hitting everyone.
Driving up costs Our cars are packed with dozens of sensors and endless lines of computer code. Combine that with the rising cost of replacement parts and repairs, and voila, soaring auto insurance rates.
Look at these numbers from Bloomberg. They say that EVs are part of what’s driving costs. For a gas car, the average repair bill is around $4,437. The average for an electric vehicle is $6,618.
No wonder the average collision insurance claim jumped by 64% between 2018 and 2022. In 2023, auto insurance rates jumped another 20%, the biggest increase since 1976. Don’t even get me started on how much new and used cars cost right now.
Let’s look under the hood In 2018, Toyota redesigned its uber-popular Camry. The number of parts in the front bumper alone increased from 18 to 43 — most are related to advanced driver-assist features.
The upgrades also mean a front-end collision repair is 43% more expensive. It’s not just driver-assist jacking up costs.
Lots of new cars have LED headlights, which cost around five times more than halogen lights to replace. New cars contain more aluminum. Compared to steel, aluminum is lighter and provides better gas mileage and more protection in a crash — but harder and more expensive to fix. EVs take 20 days, on average, to repair. That’s 40% longer than traditional vehicles and $500 more expensive for labor. Smart ways to save I make it my business to find the best ways to save. Then, I pass them along to you. Let’s do this.
Review your current plan and make adjustments to your coverage. Raising the deductible could result in a significant decrease in your premium. Keep in mind you’ll pay more out of pocket if you get into an accident. Ask for discounts. You might get one if your car has an anti-theft system installed, you’re a safe (accident-free) driver, or you’ve completed defensive driving courses. Talk to your agent. Consider switching to usage-based insurance. If you don’t drive that much or have a relatively short commute, you could pay much less than you would under a traditional plan. Bundle with other insurance plans from the same provider. Carrying home, auto, life and even pet insurance under one company means better rates. The million-dollar question “Should I install one of those trackers to get a discount?” You know, just toss it in your car to save. Yeah, it tracks everything. My podcast co-host Andrew made a good point: His phone is already tracking him anyway. Fair enough.
For me, the discount isn’t worth it. Review your plan, talk to your agent and see how much you’ll really save by letting them know everywhere you go — and every time you hit the gas or slam on the brakes.
🍝 Why does pasta always have to pay so much for car insurance? It can’t drive a car without making it al dente.
My liability only insurance for 97 suburban was just $62 for 6 months.
If that’s true, then why is my insurance company charging me the same for my 20 year old truck that they charge me for my car?
They raise rates because they can.
I’ll predict within 5 years....the used-car market for vehicles over 30 years old goes up in a huge way. Even junkers from 1980s...will be triple of their current value.
Airbags alone can total a car.
We have a perfect drivers record and no accidents. For the same three cars three years ago was $1,100. This premium was $2,700—with the same company and with their discounts.
Blame it on distracted drivers causing far more accidents than before.
Yes. It’s texting. Not so much talking on the phone but texting.
Yep, got to have pretty new shiny things.
“If that’s true, then why is my insurance company charging me the same for my 20 year old truck that they charge me for my car?”
Actually, it might be the case that your truck could cause MORE damage to that 2023 $80k car you might hit.
My experience is completely different. My new Subaru, with all the tech, costs several hundred dollars less (per year) to insure, with more coverage, than my 12 year old Hyundai with over 140,000 miles.
4 cars here. 4100 every six months with prepay discount. Went up 1500 since last prepay. Freaking crazy rayes
Don’t forget personal injury attorneys and their abuse of the system. Loser pays is a fix just crying out to be implemented.
“My liability only insurance for 97 suburban was just $62 for 6 months.”
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We have a 86 Suburban that we need to have some work done on in order to get it back on the road. No computer, no radio, no AC...no bells or whistles. It was a Dept. of Transportation state vehicle when we purchased it used when it was ten years old. It was a reliable hard working vehicle and took our family on many camping trips years ago. A project for us this year is to get it repaired before parts for it become impossible to find.
It’s a combination of distracted drivers and too much tech mandated by the goobermint in our vehicles. It’s another tax on middle class to put vehicles out of reach for many Americans. No reason we can’t have a decent $25,000 truck brand new except regulations.
Exactly right. Each year, another costly regulation that needs to be incorporated into a vehicle. It all started with NHTSA "rules".
IIRC some of it has to do with each state’s regulations. One state might allow an insurance company to raise rates on only the folks with bad driving records. Another state might allow rate raises on both driving records and repair cost averages based on car type. Another state might allow that, but only to a certain point, saying rate increases have to be spread out to every one.
Because you only have liability insurance.
being an 80’s chevy, I doubt you’ll have problems getting major parts easily. interior parts, and body parts very likely.
spare parts availability is a Big reason I have a 91 Wrangler.
I can order a new frame, shipped, if I wanted too for 4k, and a new Tub for 3k, shipped. Doors are an issue, but soft doors and rag tops can do alright where I live in the winter.
engines are still readily available and being a jeep, aftermarket parts will be available for the forseeable future.
rebuilt Transmissions start at about 1000 bucks, and easy to find online. used to be a lot of them on ebay. haven’t checked recently.
plus it’s stupid easy to work on.
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