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.
Also relevant maybe here ..
Got a 2011 Hyundai Sonata. Air Bag Idiot light on dash came on a month ago for no reason. Now my cruise control won’t ‘set’ — wouldn’t be surprised if the AirBag police are making others features break to force me into the dealership !!
I’ve hit someone when I was at fault. They will not come after you unless you are a business with deep deep pockets. In Florida they can’t sue and take your cars, house or retirement. The lawyers tried to get $10k out of me. I just ignored it and nothing happened. Not saying you’re wrong necessarily.
I think it’s about 3 or 4 hundred dollars.
I'd hate to think that I'm paying more because of the hight tech required to make me pay more just to use the car.
-PJ
The Controller Area Network (CAN bus) has the electronics talk to one another. A problem in one area may or will cause problems elsewhere.
Searches: the majority of CANBUS communication problems are caused by poor wiring, incorrect termination, or the use of multiple frequencies on the same bus.
Scotty Kilmer says not to use the OBD port for anything but a diagnostic tool. He reports how an insurance tracking tool that uses that port can cause codes to pop up that could cost you hundreds of dollars.
https://youtu.be/Y445BMN-nm8?t=206
I am in southern California. I have been hit in my parking lot 4 times!
The lot holds 36 cars. 2 were scraps that just left paint from the car next to me as the pulled out. Neither driver told me. The 3rd was a small sports car that was going out the gate and decided to back up and hit my car. No damage as my car was bigger. The 4th was the apt manager who was leaving in the dark of early morning in his giant Suburban and tried to back between my car and the car one lane over. He scrapped paint off the side of the bumper. The estimate to get repainted was over $800 as they would have to do the whole bumper to match and fill in the missing paint. He paid by certified check.
I have had my car rear ended twice by illegal on the freeway and one person from India who worked like 400 miles away near San Francisco who hit my car on a service road where everyone had stopped at a red light but him.
Slight 4” scrap on the bumper from the illegal and a totaled car from the Indian guy. Insurance only pays what the car is worth so if it costs you thousands to replace then you either sue and hope they pay or you just pay the extra yourself as it would be cheaper then paying the lawyer.
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