Why Car Insurance Is Skyrocketing
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- เผยแพร่เมื่อ 23 มิ.ย. 2024
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About this episode:
I'm sure I'm not the only one wincing at my car insurance bill these days. In this video, we're exploring why those rates are hitting the roof and I'll give you 9 essential tips to help you save. You'll also learn the sneaky ways auto makers are spying on you and how to stop them.
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You'd THINK that the longer I go without a claim and as my vehicles get older and older, the cost of insuring them should go DOWN! Very frustrating.
It use to be like that back in 2013-2015 when life made more sense
It's kinds stays the same as the ride gets older but jumps up if you purchase today's new ride with all sensor.
Also where u live matters too. Theft rate, car accident rate, hurricane/ Tornado area.
So much Calculation they are running to Determine when u might file a claim.
You want it cheap after its paid, go to shopping centers and get you that 29 a month Liability. Pretty much you just buying a piece of paper that says I'm legal to drive on the road but don't Expect my insurance to cover you 100% and I'm dead broke
@@DanielGarcia-zz9eg is right as well as @jeretso saying our entire neighborhood also determines our rates; so we're more like a team than an individual player. The only way we can have an individual plan is to self-insure, but I don't have a lawyer in my back pocket to represent me just in case I get into a big fender bender. And I don't want to take a loan out of my house to pay out any accident.
@@DanielGarcia-zz9eg Funny how where you live is taken into consideration. But where you work isn't. Imagine working 60+ hours in a bad neighborhood but your insurance doesn't take it into consideration.
Many people don’t have insurance
Very frustrating to see the biggest bump on my policy was for uninsured motorist coverage. Drivers are required by law to have coverage, but they don't, so us law abiding citizens have to make up for it. Then when you get hit by one it's pointless to sue them since they are broke.
"Hard accelerating" is a red flag? Where I live, if you leisurely accelerate when merging on the highway, you'll become a stain on the pavement.
That's kinda the problem with letting rigid systems decide things. Reality is just too complex at times and not everything can always be accounted for. It's a similarly silly situation with our legal system, but we'll rant about that another time...
After being a customer for 15 years, Progressive raised my rates 33% two months ago. No changes, no claims. At the time, I checked their stock price… it was up 33% ytd. I will never be their customer ever again.
Customer loyalty is not rewarded. Those $50 dollar credit towards deductible when you renew your policy are gimmicks to trick you into feeling nice so you'll continue to be loyal meanwhile they increase your rates on your policy that make those $50 credits chump change.
Not only has my insurance went up, but my wife was hit by a deer and had a bear attack her vehicle when we visited the mountains within a six month period and they basically threatened us with the letter that we could get canceled if we filed another claim. Making us proud, statefarm
You'll be telling them you were hit by an actual car next.
How many claims have you put in all together?
How dare you use the service you are paying for.
@@chessmaster1115 2
@chessmaster1115 work for one of the big insurers and 2 is the limit for this company
Number one way to fight high insurance is to have a car that’s not worth a lot. High insurance is another major downside of expensive vehicles
Not true here in canada 😢
You are right plus live in a safe less dense neighborhood. Driving an old 2004 definitely helps me save on car insurance.
@@gtaospotlight4327 I hear a lot of things are expensive in Canada? Someone told me that in some places 4 pieces of a small chicken was $14 🤯!!! But you do have cleaner air and your food regulations overall let's you live a healthier life. This is coming from a girl who lives near Smogland and in the highest ozone pollution.
and low deductible
Insurers will also charge premiums for older cars because of the likelihood of a claim. It's important to work with a broker and actually talk to them when you plan to buy a car. My broker actually went through a list of cars I was looking at and checked with my plan to see how much each one would cost. There seems to be a sweet spot in terms of a car's age (somewhere around 5-8 years old), and certain models get artificial rate hikes because they tend to be more likely to be involved in incidents (like Nissan Altimas in my area, that cost twice as much as other similar sedans because so many ricers and kids buy them and then get into high-speed accidents. It's basically a stupid tax you pay for OTHER people's stupidity).
Nice thing about having 30 year old trucks, is that I don't have these problems haha.
AND I can work on them because they're simple machines!
Same here with an old car; not a truck. A simple car also means the labor cost is less if there is a claim so I get to pay less insurance too ☺️
I work for a personal injury law firm. My number one suggestion: Purchase uninsured and underinsured motorist coverage. Also, if you don't have health insurance, purchase medical payments coverage (depending on the insurance carrier and state, it may or may not be available).
Edit: 500k in liability coverage is excessive, unless you actually have assets from which an injured party may recover. Excess judgments are rarely sought (i.e., when the insurance carrier tenders the available policy limit but it is insufficient to cover the injured party's damages and he/she sues the driver to collect additional monies). Many drivers have only state minimum coverage, so that's why underinsured motorist coverage is critical.
regarding uninsured/underinsured if the other person doesn't the comprehensive portion of the policy pick that up? like if I get hit by an uninsured doesn't the comprehensive portion of my collision policy cover the cost of my tab? i forget the terminology, but I know I havee full coverage and under that is collision coverage, which is coverage int eh event of collision
also if the judgement exceeds your policy limits aren't you then liable for the remaining amount?
@@nathanjoseph9204: Yes, if your vehicle is damaged by an uninsured motorist, you can file a first-party claim to have your vehicle repaired or totaled. And for the record, you should always file a first-party claim regardless of fault, as your insurance carrier has contractual obligations to you unlike a third-party insurance carrier. Unlike collision coverage, however, uninsured motorist coverage has two elements: bodily injury and property damage. It's the former that makes uninsured (and underinsured) motorist coverage so important.
@@nathanjoseph9204: Yes, but 99% of claims settle even after the filing of a lawsuit. Excess judgments are very rare.
U/U coverage has saved me just last year when I was in a not at fault accident and my my insurance said I would of been SOL without that coverage. I would of had to fight there insurance and guaranteed less then 100% payout or sued them
Just getting ready to go talk to my agent and George pops up spitting facts, it’s destiny. 2 days ago my agent said you’re credit score is great, drive history good and nothing will raise. Got my bill and it’s 40% more. 😮. Liar liar pants on fire sir.
It's not necessarily you, it's the other drivers who choose to cruise around without insurance and violent weather that happens 1,000 miles away. This explains why everyone's rate increases even if your driving and accident record remains squeaky clean.
Car insurance is basically a tax on people who have something to lose. What are you going to do? Sue a person who already can't afford their car insurance to pay a settlement? If the idiot totals your car but has no insurance, your insurance will still have to pay out, who then will eventually increase your premiums, which creates a feedback loop.
@@panzer_TZin what you explained is the reason why car insurance is a scam because I never ever hear a single story about a single person who drove around without car insurance being charged for that crime I never ever hear about them going to jail
@@motoryzen Yes!!!! If it's illegal to drive without insurance, why are so many people still able to do so? Obviously, the punishment for breaking that law is not severe enough.
A driver who hit my vehicle had the trifecta: uninsured, not named on vehicle registration, AND had an expired driver's license. The responding police officer let her drive away from the scene of the accident with a ticket for "failure to yield". I'll bet she never paid that fine. I got the worst of it, and my car had to be towed on a flatbed.
Of course, my insurance premium went up. This happened when I lived in an "at-fault" state. Normally, the deductible would be paid by the insurance of the person "at-fault" for the accident. Since she had no insurance, however, I had to pay the deductible myself. My car was in the shop for about a month because of a part shortage.
@@misterskippy2u - You should have sued her in small claims courts for your deductible and any other expenses. She may have never paid the judgement you get against her, but that judgement would make her life much more difficult should she try to get a loan, get a job, rent an apartment, etc.
@@chiplangowski3298 I would have been inconvenienced FAR more that she would have by a suit. Even if I won, I seriously doubt she had the means to pay for anything. I'd be stuck holding the bag for legal fees on top of the costs incurred by the accident.
"Does your Audi know you have an innie" 😂😂😂
While I agree with the saving tips... Car insurance is expensive because of other bad drivers who should not be allowed on the road.
The government needs to make more efforts to remove dangerous drivers from the road.
@@9libertybellwhere I live people illegally buy their driver’s license off the internet and never learn how to drive. We need to get rid of privatization of driver’s licensing and vehicle registration. The government should be in charge of that. Too many dishonest people out there.
@@JewelBlueIbanezwhere is the DMV/BMV completely privatized? Honest question.
I don't know who edits your videos but their work is 10/10.
George! How can this be scary, maddening and funny at the same time?!?! 😱😡🤣
I work in insurance and am debating sharing this video with some of my peers. George did his homework. Its the harsh reality of life, it is more expensive to insure cars in 2024 vs 2019-2020.
“wees neek” “need a nappy” I see George is in full-on Silly Goose Mode today
I've never been more grateful I'm driving a used Toyota from 2002
I'm actively searching to buy a new pickup and I honestly had no idea about any of this! Thanks for the I rotational video, as always George!
Crime makes it worse. Car thief will not follow traffic laws either. You are subsidizing your neighbors insurance too. So if your neighbor's car is stolen or totaled your rate will go up.
It's the reason I moved from one suburban town to another.
And yes ... all those catalytic converters getting stolen 🤦
Bro I'm not one to like videos, but that rap was fire
This blew my mind!! I had to double check that dealerships were doing this. I can’t believe this is legal. You’d better bet I’m going to be making all changes I need to today to stop data sharing!
I dropped auto insurance years ago here in MN. 700+ credit, own home, carried auto insurance for 30 years with rates only dropping once back in the 90s. Now the state government here issues drivers licenses to illegals and gives them auto insurance through taxpayer money.
If the state wants me to carry auto insurance than let them offer me a discounted rate on liability, something my insurance company won't do even with home insurance coverage last 14 years. I'm not paying $100 a mt for useless coverage on a single vehicle just to be "legal" in the eyes of the law. I literally drive less than 5000 a year in my own car, then drive a company work vehicle that is insured by the company. Not bilking me out of $1200 a year for coverage that covers nothing but my supposed legality status.
And it is a myth that police can run plates to see if I have auto insurance, that info doesn't exist to them and a printed piece of paper from kinkos works fine if pulled over.
I'm considering dropping my home insurance to at this point.
37% of all drivers on the road are UNINSURED. AND HALF OF THEM AREN'T EVEN AMERICANS.
Bot is going to end up bankrupt!
Raising deductible definitely will not save you 40%
Great timing this video!
Hi George! Watching from Australia. I love your videos! 😁
I pay 216€ (roughly 230$) for a liability only insurance (coverage is 8 Million per person) here in germany.
Per year, mind you! So 19$ per month. 🤑
Appreciated this episode, there were a few items I thought I knew but didn’t after watching. Would love to see (it might be out there already) a review of umbrella liability coverage, which typically is with the same company as your car insurance provider, for reasons I won’t bore you with.
Years ago, my insurance premiums doubled as did those of everyone in Ontario. The people cried foul! So, Dalton McGuinty then Premier of Ontario decided it was time to introduce insurance provided by the State. We all loved the idea. The insurance industry screamed foul, claiming the State cannot do any such thing. The State replied absolutely they could. Competition is wonderful they stated. Next thing I know as the State prepared to introduce insurance coverages, I received my insurance documents. My premiums had returned to their previous numbers. 😂
Power of the State used as it should be.
Great info George! Thank you!
Lmao 😂 The Bee Gees “”staying alive” 🎶 part had me cracking up.
Creative writing in this one, great episode based on content and delivery
I learned something today, thanks George.
I live in Michigan. Highest rates in the country. They passed a law making rates almost cut in half, and it's still insane.
My husband wfh and our premium is very low (old cars in our garage). He's now on a hybrid schedule, so I know our premium will go up. I am working on finding a wfh job too. Less usage equals less insurance, less maintenance bills, and less at the pump.
Since many people watching this are followers of Ramsey principles, consider self insuring.
No accidents. No claims. 50 years with USAA. Full coverage. Rates keep increasing for the same 500k coverage. Got a recommendation to change?
Insurance companies are only trying to figure out how much money are they going to have to spend on you and how frequently will they be called on to pay out for you. That’s why they ask so many seemingly irrelevant questions, they’re trying to figure out your likelihood of accidents or claims.
If they think you’re going to be a frequently flier, you’re going to pay more.
older cars are cheaper to insure. I haveca 1994 Cadillac seville with full coverage and I pay 65 a month 250 deductible.
Simply the breakdown of the dollar .
@5:00, all I know is I just need to put 5 on it. How much are scratch offs nowdays?
20 dollar scratcher
Yeah I used to work for an insurance company….shop around!
People would call because their rates kept going up and they’re like “can’t I get a discount” I’ve been loyal for 10 years”
New customers actually had a rating factor that gave them lower pricing😂😂
But there is also a factor for how long you were with your previous insurance company…if you switch after your with your current company for like 5 years you’ll get an even better rate…assuming you have a good driving history.
Considering the average new car price went up (almost) 20% back in 2020; it just sounds like the insurance companies are finally catching up
Greater Car values and increased cost of claims, means higher insurance premiums.
It just took them a while to catch up
Blind.
Idk bout yall, dropping my full coverage on my paid off vehicle only saves me $5 a month
Lucky I never dropped full coverage because yrs later a driver with no insurance and can't be found , my full coverage gave me check to purchase my next vehicle after it was Determine to be total out
No way comp and collision are only $5
@timinerie my bad, $5 a month = 60 a yr.
That's how my insurance is when I was poking around online to reduce my insurance
Mine went up 40% and I own a 2012 Prius and 2009 CRV in California. I’ve also not had one accident since I started driving 20 years ago. So dumb
From $60 to $124/month on a 2014 used car 👀 (No tickets, no claims, late 30s, etc)
We called around checking for cheaper and it's more 😮
Can you do a video on how to do a "no spend month"?
Don’t spend money. Not difficult.
They're inflating prices even for lower risk drivers.
Insurance is a racket. They do things that you would think would be illegal and they get away with it. If you have a teenage son who starts driving their insurance is 4x what insuring your teenage daughter is bc boys statistically drive more recklessly. Is that true? Yeah, generally, but any other setting people would say that’s “discriminatory on the basis of sex”
The amount of people that are with fine having permanent debt(car payments/insurance) is wild. If only there were any alternatives...
I got my license suspended. And it wasn’t suspended for long. However, my insurance went sky rocket and I can’t even find a 200+ insurance yet. And it’s frustrating. I was thinking it was me but seeing all these comments… insurance just wanting to make money by raising up the prices
Comparison of DeleteMe vs. Zander Identity Theft Protection?
Car insurance is expensive because of car cost way more than the used to and the injury portions/settlements have gotten out of control.
Everyone should have underinsured motorist policy and at least the same amount as your liability. Far too many people don't even have enough liability insurance today. A family member of mine got hit by someone who only had a $25,000 policy and that didn't even cover the basics. Also please look at keeping your rental or roadside assistance if it's like an extra Buck or two a month. That amount of savings is pitiful to get rid of it.
Unfortunately times are tough for some people. Most of the time they choose food over insurance in a heart beat. I hear some are not even renewing their registration. My insurance is very low because my cars are very old and I use mileage wisely by grouping my task; 2004 Toyota with only 120k miles. But 1000x yes, I will always carry uninsured motorist because it costs so little.
In Europe, you want to have a car if you cannot afford the insurance. The liability minimums in Europe are astronomical compared to here. When I live there, I had to have a $1 million liability policy. In the states, you don't even need to have insurance in some states. Other states have a low $25,000 liability. Our problem here is not insurance itself, it is our concept of car ownership. I understand things are tight for some families. However, if you think the cost of insurance with you driving is keeping you from food for even the low costs of some of these options that you can remove, there are bigger issues at play. I hate to say this, but in many European countries, many of these individuals may not even be able to own a car.
@@RetroGamer20109 I totally understand. My pastor had asked us to raise our hands if we owned a car (even on loan) and then told us that we are rich in comparison to others around the world. For the past 15 years people are also living out of their cars now too. So that's why I believe in buying uninsured motorists to protect myself from others who can't buy insurance.
Yikes ... a million dollar insurance policy! Does it have anything to do with the speed limits?
@@mandywong1408 The insurance policies of Europe are based on the concept that if you want to drive, you have to afford it and be able to protect people around you at the same time. I don't know if it's increased since I lived in Europe, but I do know that the million dollar policy is based on the public policy that drivers need to be able to pay out whatever is necessary if they have an accident or cause damage with a vehicle.
Make sure that the listed use and yearly mileage for your vehicles are correct- if you have a vehicle that you only drive on weekends and put less than 5k miles on per year make sure that is reflected on your policy. And make sure your personal info is correct- address, any driving courses you've taken, and even type of license- I saved almost $10 a month by updating my personal info to reflect that I had obtained a commercial driver's license.
The sheer number of uninsured and underinsured motorists as well as spiking vehicle theft rates are driving car insurance premiums up, too. Probably more than everything else.
So basically, if you drive badly you will be punished with higher rates, and if you drive well you will be punished with higher rates...
04:31 wow
Anything "mandated" by federal and state governments should be highly regulated and under constant scrutiny. I don't have a choice to operate a vehicle legally without insurance.
Gen Z has far more traffic citations and accidents than other generations. No surprise there being younger drivers. But the rate has drastically increased for that age cohort in the last 10 years. It's obvious that they have more issues with distracted driving than other age groups. That combining that with more expensive car repairs due to added technology along with insurance companies spreading the increased costs to all drivers is driving costs up even for those of us who are safe drivers with old cars.
It’s skyrocketing because of all the carjackings.
My parents literally today told me theirs went up by 45%! 😡
Everyone wants their own employer to make a profit, but when insurance companies have to raise premiums to cover their costs, everyone is upset
I carry full coverage with $500 deductible. Only costs $45 a month with state farm. I do the drive and safe program though. If they are tracking me might as well monetize it and lower my premium. Ive been driving for 26 years and zero accidents and zero tickets....
I have State Farm and definitely don’t pay $45 a month. They raised our premiums as well.
@@leytonfortnite4724bummer
vehicle privacy report does nothing. just a web page to sell you stuff.
Same here
George videos are so much fun lol
In WA state, the insurance commissioner made it so your credit rating had no impact on your insurance cost anymore…..so ours went way up and those with crappy credit went way down….gotta make everyone “equal” 😡
It doesnt skyrocket if you dont pay it
Payment went from 150$ to 460$ and im not fuxking joking
It is obvious why car insurance (and homeowners insurance) are skyrocketing. Cars are much more expensive to repair or replace, so are homes. Couple that with increased accidents compared to pre pandemic and increased natural disasters (or precieved at least) respectively and you have it.
I think the biggest contributor is having to pay for the uninsured. The insurance companies are drawing premiums from a smaller pool while having to pay higher costs for repairs/replacement and medical costs.
What if i already allow my insurance company to track me? 😆 It actually saves me about $500 a year 🤷
Just another reason to not have car insurance and just be a good driver
My insurance went up £1 this year in April. UK. Fully comprehensive cover. Audi TT.
2,028 more subscribers is both oddly specific and tragically unambitious for a Ramsey personality. 🤣
You seriously recommend $500k in liability? Insurance companies will shudder if people take this advice. You need to actually have the assets to support such a high limit(not including your house). Excess judgements are rarely sought after insurance company tenders the limits. To have such a high limit you need to be a millionaire with the cash in bank or a bunch of real estate(not including personal home ).
I’m in Alberta, Canada. $1,000,000 liability is a requirement for most organizations (ie schools, churches, etc) to transport other people’s children. Even in Saskatchewan, which is government run insurance the standard minimum is $700k. I have $2,000,000 because it’s only an extra $4/month and there’s a lot of Bentley’s worth more than my parents’ house where I live.
your the Brett Cooper of money
Is Delete Me legit George?! I’m super cautious. Y’all know the owners or thoroughly “investigated” them?
Also LaurelRoad legit? Are they brand new?
I went with Marcus because you recommended but now you’re saying this place 😜
You're doing too many advertising
Really? “Pros I trust in your area”? Really?
Being over insured is as bad as under, in some cases. Some go years without a claim, depreciating car, no tickets, overall safe person and still pay more each year.
Then end up spending the cost of the car over its lifetime to ensure it for the ‘just in case’.
Trust me, I get it, used insurance before but my God, who wants to be over leveraged on car, house, life, appliance, electronic device insurances?
And the rising cost of health insurance 😔
@@mandywong1408 forgot to list health insurance! For sure! Adds to the monthly costs!
I understand your point, but having to cover medical costs from an auto accident could destroy you financially. I'm not going to take that risk.
!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks will be appreciated
nice! once you hit a big milestone, the next comes easier. How can i reach him, if you don't mind me asking?
I've just looked up his full name on my browser and found his webpage without sweat, very much appreciate this.
Lots of sponsors & links.
Your jokes are painful to watch but the info is good 🤷🏻♂️
Exactly what I was thinking 😂
Back in the day cars didn't even exist. WTF are you talking about, kid?
Thanks, Obama!
I’ve always been told it’s because I’m paying for all the idiot male drivers at my age who take more risks when driving
wrong, and quit hating on people.
@@VirtuousWarrior-wr2fv just said that’s what I was always told. Not that it was right or that I agreed
Non ti capisco. Try to speak latin.
I’ ve been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out least advise me on what to do
Chose quality stocks and follow them up. If you're not one for such complexities, hire a wealth manager to grow your money. I use the latter.
I recommend $2 million liability at minimum. Covers your bacon and usually less than $100 a year more.
Starts with Joe ends with a Biden
Start with idiot consumers buying overpriced nonsense.
Had a 6 month premium due this month for 1500 bucks, been with the same company for 9 years. Decided to shop again, found another for $500 bucks for 6 month, same coverage. Insurance is a scam.