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.
I had that rider on my insurance (for windshields) - this is the third one I’ve lost over the past 20 or so years. Finally dropped it - and voila! Another broken windshield.
I’m retired now and don’t have to travel down the 110 any longer except to visit friends - and it was on one of those visits that I got hit by a rock...
As far as I know, they don't.
I believe cars that drive themselves are not covered by traditional auto insurance policies, but under product liability insurance. That's one reason why I don't expect to see those things on the road in large numbers any time soon. Unlike auto insurance claims, a product liability claim can include punitive damages. This alone scares most auto manufacturers away from developing Level 5 (fully automated) cars even though the technology is available and mature enough to do it.
With sticker prices at $60k-$80k and up Insurance is going to get expensive.
We’ve hit the critical mass on auto prices and new prices are high for a couple of reasons.
1) Subsidize EV losses. How can Ford afford to lose $36k on each F150 lighting.
2) Optional Equipment and electronics have gone crazy.
3) Dealer Greed which is being rolled back as we speak but the banks are really hurting because they financed all the overpriced cars. Almost everyone is upside down.
“My new Subaru, with all the tech, costs several hundred dollars less (per year) to insure, ...”
Liability and collision rates are based on different things.
New cars with their driver help features might lower liability rates, but collision rates for them might be higher because the things are more expensive to fix.
Exactly. Tech you just don’t need.
/s
My liability only insurance for 97 suburban was just $62 for 6 months.
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Wanna trade? My full coverage on a 2022 Pacifica is $1,047.91.
(insert sad face)
As long as you own nothing and have no assets to speak of - then that's fine. But if you hit or injure someone, they are gonna sue.
A 1999 Ford Explorer Sport..and a 1998 Honda Civic.
None of these are fancy, dancey.
Actually the rising costs has more to do with a sloo of un-insured drivers. Illegals aren’t buying auto insurance.
Our son drives an EV and was in a collision when stopped at a stop sign and his vehicle was hit from behind. The damage appeared superficial, but amounted to nearly $8,000 and took nearly a month to complete. There was only one body shop in the area that works on EVs.
“I’m to the point I’m ready to only drive $10k cars, not have insurance and pay the fine if caught. It’s cheaper and a million illegals are doing that in Florida, so why not me?”
You might have something there! How much is the fine for not having automobile insurance? $200 or so?
https://www.kbb.com/car-advice/insurance/penalties-driving-without-car-insurance/
Or... all the safety features really work, preventing accidents, thus, the cost of repairing them.
You might have something there! How much is the fine for not having automobile insurance? $200 or so?
In New Mexico my uninsured insurance coverage is almost as much as my liability insurance. Driven by the high numbers of uninsured, many illegals.
1/2 ton & 3/4 ton-—NOT 1 ton, which is what I own.
THE COVERAGE ON MY 2 VEHICLES INCLUDES UNINSURED MOTORISTS.
NOW OVER 39% of premiums.
USED TO BE $1 a month extra.
HAVE DRIVEN OVER 1 MILLION MILES
NEVER HAD A VEHICLE WITH AN AIRBAG
PUT OVER 444,000 miles on a 1965 Pontiac wagon
Have put over 250,000 of 348,000 miles on a 1976 1 ton Chevy truck
Have over 223,000 on a Buick wagon
Other cars sprinkled thru out over the years.
MAYBE LOSS OF DRIVER’S LICENSE
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