The Creepy Reason Car Insurance Rates Keep Jumping
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Has your car insurance gone up? I'll answer for you. Probably yes. How did you know that? In March 2024, auto insurance costs were 22% higher than they were a year earlier. And that's the largest gain since December of 1976. And for context, that's the same year the Steelers beat the Cowboys in Super Bowl X.

Also, can we just, why are we still using Roman numerals for the Super Bowl? We should have stopped that like XXVIII years ago. It's ridiculous. Anyway, there's a bunch of reasons car insurance rates are going up, and one of the reasons will give you the creeps, the heebies, the jeebies, maybe even the Bee Gees.

Day of love, day of love. Never do that again. In today's video, we'll talk about how automakers are spying on you, how to stop them from doing it, and nine ways to lower your car insurance rates. But first, hit those like, subscribe, and share buttons, and let's see if we can add MMXXVIII and more subscribers. Is that even a real number? Any Romans in the chat want to answer? Sorry, Italians, they prefer to be called Italians these days. Hey!

Why you busting my numerals? What are you doing? Speaking Italian. First off, the whole car insurance industry has been struggling for a while now. Like, trying to fold a fitted sheet level struggling. And lately, things have just gotten worse. Skyrocketing used car prices...

More severe weather events and natural disasters, more car accidents, inflation, and supply chain bottlenecks affecting car parts, all of which adds up to more claims and higher payouts. Ergo, the cost to insure people has risen, and the insurance companies pass on that cost to you, the consumer. - I always get the fuzzy end of the lollipop. - But there's a ton of factors that play into how much you pay.

Things like your deductible, the kind of car you drive, your claim history, your commute, your credit score, your coverage and payment history, your location, age, gender, and add-ons to your policy. Not to mention your driving record, which is where the creepy part comes in. Now, obviously, you'd expect for speeding tickets, DUIs, and other traffic violations to cause your rates to rise. But some people's insurance is going up due to a driving record they didn't even know existed, one that their vehicle has been quietly recording and sharing. Ba-ba-ba-ba-ha!

You see, back in the day, cars were primarily a way to get from point A to point B and a good place to drink your RC soda pop while you watch a Hitchcock movie at the driveway. But these days, cars are now mobile data harvesting machines. Most new vehicles today have microphones, cameras, sensors, and even telematic systems, which I think is the third level of Scientology. And

And all of these fancy doodads collect and send your information to the car manufacturer. And some of the biggest automakers are collecting that driving data and selling it to data brokers like Verisk and Lexus Nexus. These data brokers create what's known as a consumer disclosure report, which is basically a giant document containing a bunch of personal information about you. These reports can include driving data like speeding, hard braking, and hard accelerating. Even the length of trips the person takes in the vehicles.

Then they sell that info to insurance companies who then assess your riskiness and adjust your rates accordingly or worse, refuse coverage altogether. Now the car companies say consent is king and that they're not sharing this info without your approval. But a lot of people have no idea it's happening because they didn't read all the fine print when they signed the dotted line at the dealership. But wait, there's more creepiness. Cadillac, GMC, Buick and Chevrolet have a line in their California privacy statement that says they can collect your quote,

genetic, physiological, behavioral, and biological characteristics. And Kia and Nissan say they also collect genetic information. So how are they even doing this? DNA samples? Are you driving a two-ton 23andMe with mud flaps? Does your Audi know that you have a nanny? Does your Kia know that you have diarrhea? Valid question. I'm also concerned.

Why do you always say super weird stuff like that? And get this, Nissan says they can collect and share information about your intelligence and sexual activity. And I'm not being salacious here, that's just an actual fact. All of this unhinged data harvesting raises some serious red flags for several reasons. But one of the most immediate unwelcome effects is insurance companies denying people coverage or jacking up their rates based on data they didn't even know was being collected.

And worse, they're selling all of this to make extra money off of you. How much exactly? Well, according to a GM employee, this program is making them millions. And Lexus Nexus claims to have driving data on more than 10 million vehicles. So how do you find out if your vehicle is one of those tracking you and sharing your information? Well, there's actually a website you can check out if you have a suspicion your Expedition is tracking your position and the condition of your ignition without your permission.

I'm the financial M&M, bro. Mom's spaghetti. Mom's spaghetti. What's the other line? Arms are heavy. We sneak. Arms are heavy. Mom's spaghetti. We sneak. We sneak. Eyes are heavy. Getting sleepy. Taking nappy.

Um, child, anyway, so. - To find out what data your vehicle is capable of collecting, go to vehicleprivacyreport.com and enter your VIN. And if you've got a diesel, you know what to do. And if you wanna request your consumer disclosure report from Lexus, Nexus, and Verisk, I'll drop the links below in the description

to save you the time. Or you could also check your privacy settings on your car's infotainment system or app to see if you can opt out of data sharing, and I would recommend it. And now that we know even cars can obtain some truly disturbing and personal data, like how your seats are unusually warm, even though your car doesn't have seat warmers, you probably wanna opt out of having your info gathered and sold by these data brokers.

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Now, even if your car isn't spying on you and sharing your data, your rates are probably still going up. So what can you do to save money? Well, here's some tips. You can ask for a discount. Maybe you're a member of AAA. Maybe you work a certain job like a teacher or nurse. You serve in the military. You get good grades as a student. You're a senior citizen. Your vehicle has safety features like blind spot warning. Maybe you completed a driver safety course or you park your cars indoors like in a garage and not your living room. Hey!

Maybe no one will notice.

Most people choose a low deductible because they want to avoid the risk of big repair bills after an accident. But low deductible equals higher premiums. Higher deductible equals lower premiums. That's what you want. So here's what you do. Start a sinking fund for car repairs and raise your deductible to around $1,000. That could save you 40% or more on your premiums.

Here's another thing you can do. Drop the coverage you don't need. When you have a fully funded emergency fund, maybe you drop the extras like emergency roadside assistance or rental car reimbursement to keep more cash in your pocket.

You can even drop collision coverage if you have an older car that's paid off and you have enough in savings to cover the replacement on your own. But here's the thing. Never, ever cut back on liability insurance. Repairs and medical bills can cost hundreds of thousands of dollars after an accident. And if that's more than your insurance policy covers, you're legally required to pay the rest. I recommend carrying at least $500,000 in liability. That way you're actually protected.

And it won't increase your rate by much, but it will increase your peace. Another quick tip, change how you pay your premiums. Instead of paying monthly premiums, maybe you pay in full once a year. That's what I do, and I get a discount for doing so. Another easy way to save is with automatic payments and paperless billing. More discounts there. Let's keep this discount party going. Next one, bundle up.

I'm talking about bundling your policies here. If you've got insurance on another car, a house, a boat, a houseboat, a boathouse, check to see if you can get a lower premium for bundling those policies together. That can be a quick way to save between 3% and 25% on your insurance bill without even breaking a sweat.

And lastly, review your coverage. Simply updating the info on your policy could lower your car insurance premiums. You don't wanna be overpaying because you still have a teen driver on your policy, even though your teen is now 30 years old with a mediocre job and a PT cruiser covered by a car insurance policy of their own. And make sure to update your insurance if you moved into a new neighborhood, you sold a vehicle, you got a new job, you got married, all of these can affect your rates. And it's a good idea to check your coverage at least once a year or anytime you go through a major life change

to make sure your policy is up to date. So if you currently have car insurance, do a little quick audit on your policy. You might be able to save a good amount of money just by making some quick adjustments to your coverage, your deductible, and how you pay your premiums. And if you have a car loan, you might wanna take a gander at this next video to see how it could be costing you roughly $6 million. I'll also drop a link in the description below. Thanks for watching. We'll see you next time.