Why Car Insurance Rates Are Skyrocketing In The U.S.
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- Опубликовано: 20 май 2024
- Car insurance has gotten expensive. In the U.S. the average annual premium for full coverage car insurance rose 26% to $2,543 compared to last year, according to Bankrate. Fewer auto mechanics, a tighter supply of used vehicles and increased health care bills are fueling rising prices. Cars are also costlier to fix and American drivers are becoming more reckless. There were more than 6.1 million motor vehicle crashes reported to the police in 2021, according to the US. Department of Transportation.
0:00-2:16 Intro
2:17-4:26 Chapter 1 Rising costs
4:27-8:05 Chapter 2 Why rates are increasing
8:06-9:53 Chapter 3 Calculating costs
9:54-12:15 Chapter 4 Driving recklessly
Produced by: Shawn Baldwin
Edited by: Marc Ganley
Supervising Producer: Jeniece Pettitt
Animation: Andrea Schmitz
Additional Footage: Getty Images
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Why Car Insurance Rates Are Skyrocketing In The U.S.
DO NOT Install a driving tracking device in your car!! They sell your data (your driving habits, distance, frequency, braking, acceleration, etc) to Lexus Nexus who then sells your risk data to all the auto insurers. You hard brake or accelerate beyond what they deem acceptable, you will permanently be penalized by nearly ALL insurers. They pitch it as a discount or training device, but they fail to tell you they will sell the data.
under rated comment
Any car with an infotainment system built in already does this. Unless your buying an old car without one in it your data is getting sold. And they don't just sell it to insurance companies they will sell it to anyone who will buy it.
The phone app probably listens to drivers without their permission to hear if there's loud music in the background. Next they'll want you to install dash and rear cameras so they can upload the footage to their cloud storage. Tesla collects so much data from their drivers.
Source for that statement?@@ooldmage
It's LexisNexis not Lexus Nexus
My Home and Auto package went up 35% this year. No tickets, accidents, claims or credit drop. This is what you get for being responsible.
@@Jiggy609How is 35% justified when wages are only going up 2-3% per year?
@@Interstella-ni3vh part of it is rates are based on replacement value for the cars or house. My house went up 360/yr because my house value went up 50K since 2022. ( and for a partial loss, materials and labor went up ) The cost of replacing all my stuff went up as well. I think their rates are too high but some of it is legit.
@@Jiggy609*greedflation
I have a feeling Jiggy is working for the Insurance company. He is in every post defending this price gauging from the insurance company. It's like all the insurance companies are competing to who can screw up their customers the most and get away with it.
We have to pay for the uninsured cars and their accidents as well. In my state, they are allowing illegals to get driver's licenses!!!
When insurance companies have lobbyists, your complaints fall on deaf ears.
Gov will never do anything about this. Politicians and lobbyists made sure this entire country was car dependent and now they take money from these insurance.
They are also have their agenda to crush combustion engines. People are too stupid to see that government/corporate collusion is the issue and love to vote to give more power to that corruption.
Government responds to voters and voters don't care about individual issues, voters just vote by party and rarely engage politicians. The public complain but most never even email their congressperson.
Rich people doesnt want poor people to drive and fly. They should have the sole right
Public transport is NOT practical for the US.
@janelleg597 way to believe exactly what you've purposely been told.
Car insurance is an absolute scam. You pay thousands each year, with claiming rates, and they make it as hard as possible to get paid out when needed.
So true
@@reamebjpunless your in a state that requires it. Which is most.
Why do you think they refuse to operate public transport???😅
it's gambling in a way, but you are betting against yourself.
@mtdewramen you're ******
our entire families auto insurance doubled over the last two years. No accidents, no tickets. To say I’m livid is an understatement. Auto insurance industry needs to be investigated. I’m tired of this nonsense.
Premiums increase due to inflation (costs of labor and parts to fix other cars) and the costs are passed on to other drivers premiums. It’s not the insurance companies so much as it is the general state of the economy
@@Jiggy609 that's 1 part of it. the other part is greed. Their stock prices are at all-time highs for a reason
My insurance went down 😂
@@Jiggy609did you missed the part about record profits?
@@Dfgbuiiyyyybb record profits domt mean much if they lost money in previous years lol
FICO score should have NOTHING to do with your car insurance rate. Accidents and tickets or DUI should drive your insurance rate, not your credit score. This is something the government needs to tackle. Credit scores should be used when you need a loan. Apply for a credit card, home loan, or any form of financing. Not your water bill, utilities, or insurance.
You're right. It doesn't make sense. How do they get away with correlating credit rating and safe driving?
People don't have high credit scores by accident. They are hyper vigilant, and that comes out in their work ethic, driving style, etc. Not saying that a credit score should be weighted quite as extreme as it is, but the correlation is there for a reason. For one, they get in less accidents. Butore importantly, if rates hike they tend to leave and find a different company. An insurance payer who pays on time and never uses your services is the best customer, so people in the lowest risk categories with the most flight risk to go to another company get preferential rates.
@@CaedenV Agreed! These are things people don't think about.
WA State got rid of using credit scores for insurance rate premium, everyone with 650 up scores saw an increase in insurance premiums by 23%.
Did you even listen to what they said. Ppl with high credit are less likely to file a claim. I’ll brake that down for you….. these ppl cost us less so we can charge them less… these poor credit folks cost us more so we need to charge them more.
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It's so ironic because in the US cars were seen as extensions of freedom. Now they are the third largest form of debt with sky-high insurance rates even for people driving safe practical family cars with no accidents or tickets. What is more galling is the fact that everyone can't just not drive a car. We have such car dependency that you literally can't function without one
Nobody mentions that the real solution is not forcing a family of 4 to own 4 cars. It turns out that car-dependent suburban sprawl "freedom" has actual cost. Too bad they couldn't offload the cost of repairs to taxpayers like the Interstate highway system.
Your comment needs more likes.
@@aterventypitypNooooooooooo! Don't take away my heckin' freedom! /s
"Extensions of freedom"🤣🤣🤣🤣
Wait till you realize that you're essentially paying for every mile you drive via gas price & tolls on highways🤣 Nothing is free and everything is regulated by the government. If you don't pay them for gasoline then your car can't leave the garage. That is UNLESS you either convert to electricity/ buy an already electric car and then do the infinite electricity glitch and essentially drive for free. I won't go into details but it is 100x easier to do the infinite electricity glitch than the infinite gasoline glitch. To get the infinite gasoline glitch you have to essentially hijack a truck carrying a gasoline tank, to get the infinite electricity glitch well its A LOT easier.
@@user-wm3fc1sk1p your comment is stupid and useless.
Biggest scam in America is insurance, be it auto, home or health.
And while life.
Been saying this for years. It's legal extortion
Yup it’s legalized scams
yep, only in America!
It’s the biggest scam period, regardless of where you live.
In places like Florida, at least 50% of drivers have no auto insurance. My elderly mother’s car has been crashed into 3 times and each time the driver drove off (bc of no auto insurance) and people had to help my mother. Police did NOTHING. Floridians now have to pay the crooked insurance companies a premium specifically if they are hit by an “uninsured” driver. So what does that tell you? The law abiding citizens are being screwed by insurance companies.
A month ago, my brother’s car was totalled by an uninisured driver who had multiple suspensions on his licence. Police did nothing. My brother has to buy a new car and, of course, his premiums went up. But the uninsured driver walked away with no consequences.
Uninsured drivers are the ones least likely to be able to pay for damage. If they can't afford insurance, they can't afford to pay out of their pockets. That's why they run. Have the same problem in Detroit.
I just replied. All 3 times, my sister and 2 children were hit by illegal aliens with no insurance. Each time it was in Pasco County FL. Their insurance went up.
I almost died in a hit in run from an uninsured driver in pasco. They knew who it was but the police collected no evidence so they couldn't put him at the scene. If I hadn't been in a work vehicle so I qualify for workman's comp, or else I would have been sh$t out of luck. My hospital bill was 1.2 million.
@@BunnyMan-ec4xg Jesus 😪 glad you’re still with us. the prevalence is just snowballing at this point. FL is exploding with 2024 rate increases now on top of the last two years. It’s kookoo
Why are you blaming insurance companies for what criminals are doing? Ron Desantis thinks car dependency is freedom, he should tell police to actually do their job and arrest illegal drivers
The problem.... Are too many scams. My dad hit a woman's car so, but so soft that barely scratched her car. She came out screaming and making a scene. She got $15k for that. That's just ridiculous!
I hear a lot of stories like that. It’s really bad in Florida where the car insurance companies don’t seem to bother defending against obvious scams.
I work for an ins. company. Unfortunately it's cheaper to just pay the scammers. Going to court, hiring lawyers etc. often costs more than just writing a check. I've seen many times people claim injury without any damage done to a vehicle....25k a pop. Ins fraud is also a contributing factor for increased premiums.
That’s the main reason why I got a dash cam to prevent stupid things like this.
stop speeding
After being in two accidents that werent my fault I bought a dash cam. Its worth it.
The answer can be found here. Progressive's net income in 2023 was $3 billion 864 million, more than five times higher than in 2022. In 2022, their profits were $695 million. The situation is similar with other companies in the auto insurance industry.
CNBC will definitely tell you how much money the insurance companies paid, but never tell you how much their profits have increased😊
CNBC is trash. They will never tell the full story. They blame things like cannabis legalization and texting while driving instead of good old corporate greed.
You're right. I've seen other CNBC videos of this similar format and they sometimes leave out vital information.
Well that’s a cherry pick in itself. In 2019 they made $4bn. So their net income went down by 6x. We can blame insurance companies all we want. But the reason all our rates are jacked is because all of us responsible drivers are subsidizing opioid addled drivers that are killing everyone. Inflation on repairs is certainly a factor as well. But if you listen to their earnings calls a big factor is more accidents, and importantly accidents with fatalities and serious injuries skyrocketed out of COVID. Everyone is doped up and driving intoxicated at high speeds.
I think I saw on this video where it showed profits have gone up. Progressive was the highest. My experience has been that Progressive was less than half the cost that Farmers was for auto - even when I had a home discount before w/ Farmers. When I called a month ago to bundle my home with Progressive, the home insurance was like $4200 vs $1720 with Farmers. Shop around for sure. It doesn't always make sense to bundle.
My mom's home insurance dropped from 2100 to 1250 by switching from her previous carrier to Progressive for home. Similar for auto.
Everyone and their mother buys Tesla's too. They are HELLA expensive to repair. That is also a large factor. EV vehicles are harder to repair.
Insurance is federally required and insurance companies are profit seeking. It's not rocket science why rates are going up
Bingo there you go
Agree. Building shareholder value like using profits to buy back stocks.
but, but, but muh free market!
But having a car is not federally required.
@@Rashaadthegr8Tell that to people living in areas with poor public transportation options. We incentivized automobiles over the last century and now there aren't real alternatives in some areas.
4 people 4 cars is a testament to the complete failure of urban planning in the US (and not only).
And it is in New Jersey which is the most densely populated state
her rate isn't even that bad. Hell I am paying almost $300/ month for just one cars insurance
@@Midala87same I’m at $350/month in Jersey. And I can’t even shop around, I might take a defensive driving course
@@jakephessIt's definitely recommended. I personally use my improv to do it online. I just let the timer run out on each page while I do something else then answer the questions. The only thing I need to pay attention to are the stupid comics.
A struggling family leasing 2 cars is a testament to a failure of family money management. Maybe even drive older cars, particularly the kids.
The whole system is corrupt. From the auto insurance industry to auto bodyshop industry, don’t forget the politicians.
Yeah, problem is most people think they cant do anything about it , and label all politicans as corrupt so they decide not to vote and then expect things to change.
The auto insurance companies saw the health care insurance companies' profits and said to hold my beer.
Its the illegals on the road now .
If you watched the video you'd know they're losing money on car insurance.
@@Guiltfeeder566is that really true? Then why did insurance companies last year make huge profits?
@@theholt2ic219 That was driven by investment results. Stock market helped them in 2023 but core underwriting is still unprofitable
Gauging ~ Biden’s America no clause to protect consumers. FJB.
Not only car insurance, but homeowners’ insurance also. It’s absolutely insane.
For real. My home insurance just TRIPLED because I live in southern Oregon. I used to pay $700 last year. This year it's fukn $2100 😂 my mortgage went up $300 and I can't afford to live at my house now. I'm gonna be somebody's roommate at age 40
Live where natural disasters are rare.
@@zoner__Kiddo, the adults are talking here.
And health insurance. BRB paying $1100 a month to insure two adults and two children. Insurance is crap.
Well, Home Ins. Rates are not calculated the same way car insurance rates are. Home Insurance rates are all about 2 things First replacement costs including labor, materials etc... *AND* (2) location. I/E Is the residence in a flood zone? A Fire Zone? Is it in a city, or suburb? Etc... Sometimes property type by itself is a deal breaker but we're talking weird properties like: the house is on piers, etc. When Home Insurance Rates Go Up, Your Coverage also goes up. Not true (at all) with car insurance. FYI - I'm in CA. Ins. differs state to state.
Driving is such a pain these days. From distracted drivers, road rage, to LED headlights, I stay home as often as possible.
The LED headlights are so bright and annoying!!! Add to that the auto high beam feature adds makes this even worse.
The driving experience is terrible now. Insane traffic, no public transportation, LEDs, and outrages prices with gas, insurance, payments, maintenance, etc. This country really is crumbling and this government is a huge embarrassment.
@@spacemans4060 the number one issue is just waaay too many illegals and immigrants flooding into the country and flocking to the already overcrowded urban areas. I live close to lexington, kentucky which is not really a major destination and I've seen them everywhere. Even seen 2 times in 1 year police chasing them in my neighborhood. I can;t imagine the influx of people in a city like Chicago or Atlanta.
@@pc2555- How do you know there illegal though? 🤣
@@slowgoat6089 I did say both immigrants and illegals but sometimes it's obvious. A few I witnessed can't speak English at all and were at government offices like the DMV trying to get licenses. Can't say for sure they're illegal but the chances are high and it's clear they haven't been in the country very long, a few years at most.
THIS IS A SCAM. Someone ran into me 6 years ago. I called 3 different shops for repair estimates. Two of the companies were mad at me for asking for an estimate even though it was covered by insurance, and they refused to give me an estimate. This is how the scam operates. They charge my company 10k for a 15 minute repair, and then they whole system costs more for everybody. The entire system needs to be dismatled.
this is 100% the case
Just like my RX, it's twice the price they charge me, charge my ins company on top of that when retail is cheaper than my charge with insurance. To me that's fraud.
When there is no alternative to driving your car to get around, these insurance prices are a crippling punishment rather than an expense for freedom. Oh, and conveniently the dividend payouts are up again on the stocks for these insurers, so don't forget that in the "cost calculations".
If insurance is mandated they should also have a cap on how much they can raise the price, its only fair.
Yet conservative politics keep forcing all of us to continue enjoying the "freedom" of paying private company insurance premiums while sitting in gridlock.
you can Cash deposit of $35,000 with DMV and dont have to buy insurance in California.
@@MR3DDev What Are the Types of Financial Responsibility?
Motor vehicle liability insurance policy.
Cash deposit of $35,000 with DMV.
DMV-issued self-insurance certificate.
Surety bond for $35,000 from a company licensed to do business in California.
For information regarding cash deposits or self-insurance, contact the DMV
If you are poor you can walk.
It's crazy that americans are forced to have a car for each member of their family because of the way our cities were built. I am so lucky I don't need a car for my daily errands.
Wrong. No one makes you get a job so far from your home that you need four cars. Choose a different job closer to home and either walk or car ride with someone.
@@SerenityNowhere I think the reason people do that, is they want to work where the pay is good, but its not high enough to live in the area so they need to live further out. Thus the need for driving.
@@ahastar1141everything in life is a cost trade off. I chose to live closer to my job and saved money on transportation but my housing was more expensive.
@@SerenityNowhere in a lot of places you can't walk anywhere, even to a grocery store
when I was a teen we had 2 cars and before that we had 1. Very few NEED 2 or more cars, they choose to live where it is more convenient to. Not the same thing as NEED.
My motorcycle insurance also went up by 40% this year. I'm 46 with no accidents, no tickets, no claims in 10 years besides a windshield and an 816 credit score. I should be the cheapest guy in the world to insure.
Pure greed. Insurance companies, Home depot/Lowes, cable companies, just everyone.
My car insurance company legit told me I had to buy life insurance or they would jack up my rate my rate by $50, but if I got the life insurance they’d only raise my rate by $20. It felt like blackmail.
thats actually insane. sounds like it should be illegal. look into ethos life. look for a cheap term policy under $30 a month otherwise it wouldnt even be worth getting the life if they're still gonna up your rate $20. They must think they'll be able to collect on your life if something bad were to happen? No matter the case its f'd up
What was your response? I would have canceled that day.
How would an auto insurance company know if you held life insurance and why would it even matter?
That's not blackmail, that's extortion
The ironic part is you’re most likely not saving $30 a month because of the cost of life insurance
I’m up 10%. No tickets, accidents, or claims. My car is financed and if I pay it off and go liability only I’ll only be saving like $30 in 6 months. What a scam this has become.
Mine was also up about 10% this year... But we are talking about an extra $50 for a 6mo policy... If all the expenses I face in life this isn't one that I am concerned about yet. Married with 2 cars in the Midwest is still half of what I paid as a single dude with 1 car in Cali 20 years ago lol
mine just wen't up over 30%, car isn't financed, no accidents or tickets. Seems logical.
Profit, profit, profit. All I hear over and over again is that these insurance companies need to make profit. I don't care about their profit, or even whether those companies survive.
I'm forced to buy a car, which I don't want, because my city has no mass transit in my area -- not even a demand-response system. As such, I'm forced by law to pay for car insurance or I cannot drive the already-expensive car that I was forced to buy. That's coercion!
And no, telling me to move somewhere else isn't a reasonable or even intelligent suggestion. My whole life, including my friends and my aging parents live in the city I live in; it's not feasible to simply uproot myself and move to one of the precious few cities in America that actually provide a decent mass transit system.
If the government is going to mandate that I drive a car through public policies that refuse to address the transit problem, and if the government is going to requires under penalty of law that I carry car insurance to drive that car, then the government should provide a not-for-profit, affordable, publicly available insurance program that is designed to serve my needs and not exist to line the pockets of insurance company executives and stockholders.
I'm sick to death of people saying "government is the problem" when it's OBVIOUS that the problem is corporations! If we start eliminating these greedy corporations and outlaw lobbying, we can, as a nation, build back our government into the dominant, effective force for progress that it was when we built the national power grid and put a man on the moon. Don't tell me that we cannot collectively solve a problem so simply as car insurance!
A) my car insurance for two cars (me and my wife) went up from $107 a month to $170 a month without warning.
B) car accidents arent just cause people are “ driving more reckless”. Its also because roads are poorly maintained and cities continue to build car centric infrastructure and yet refuse to spend the little bit extra to create safer roads (take diverging diamonds, way safer than traditional intersections, but cities wanna safe a buck not a life)
C) trucks (larger vehicle design in general). Dont even get me started on the sadness that is Americans falling for the greatest marketing strategy of all time. The idea that everyone needs a truck every day all the time.
I moved from a crappy low income area full of crime in Indpls to a southern golf course community 10 miles from a popular college town. My insurance went up 30%! From a high crime/high accident area to a high income/low crime area. Why did my rates climb? The agent at Geico explained that the cost of the cars in my new area were so much more costly to fix! It had nothing to do with me, or my spotless driving record.
My costs were high for my whole life despite me never being in an accident ever and we live in a very high accident city. I've more than proven myself safe through multiple driving based jobs. Yet my insurance remains high because I'm young. 🤷♀️ Forgot to mention, no crimes or tickets either.
They assume you’re wealthy.
Seems like they’ll use any opportunity to raise rates. I moved from a nice neighborhood to a slightly less nice neighborhood 8 minutes away. My rates climbed and their reasoning was there was more claims and less safety in the area.
It sorta makes sense. I'll make a mental note not to move into Beverly Hills where there's a higher chance of crashing into a Lamborghini. 🤔
Try Miami. A combination of expensive vehicles and ghettos.
You pay insurance to cover for accidents. But when you get into an accident, the insurance goes up? So why did I pay you money for no reason all these years just for it to spike when i need help...
Only if you are at fault.
@marcusbrown188 so wasn't my payments all the years to cover for that fault??? If not, then what am I paying them for???
@@mbadi5735 idk why ur paying more when ur not at fault
@marcusbrown188 you pay these insurance companies thousands and thousands of dollars over the course of your driving years. And one minor accident is enough for them to bump up the your insurance. Isn't this a scam?
@@mbadi5735 I been in a car accident and wasn’t at fault and no increase. I had to make another claim cause a tree brand smashed my windshield and no increase. Considered “act of god” as in not at fault and the 2nd party doesn’t exist
In Michigan we have what’s called “no fault” insurance, which means even if you’re parked and someone hits your car, your insurance is liable to pay, not the offending party. And since insurance companies are predatory sheisters, they then raise your rates even though you did nothing wrong.
I have read some crazy stories through these comments but yours might be the craziest. I legitimately feel for you and Michigan drivers. That's just robbery, frankly. Completely unacceptable to pay in that instance. I'm in Ohio so I'll have to check if we do that too.
This is called installment repair. You getting loan for your own repair that you must have to pay in form of premium hike.
Florida is the same, and you can't even get a deductible below $500 here.
We need trains. I’m a truck driver, and I saw over 10 highway closures between Austin and Dallas from accidents today. A lot of people should not be driving
corporate greed never seems to be part of the equation with CNBC
Because it's not real. Is it corporate generosity when prices go down?
of course dont you know the media is controlled by corporations?
Fox News would celebrate them on their awesome business model and how they earned their right to be greedy.
Oh and I’m mostly conservative and a Trump guy.
Printing trillions during Covid and world’s factory locking down for three years will cause inflation. That is three years worth of goods not being produced. American think stuff just magically appears on the shelves.
this is much mire than corporate greed. blame your state laws for its soft liberal laws on motorists... peopl are out there driving crazy
Insurance companies saved tens of Billions during the lockdowns. As soon as it was over the first thing they did was raise the rate. I used to work at a call center for liberty mutual, and the complaints and lies we were forced to tell customers made me quit. Best decision of my life!
What lies did they make you tell?
And a funny part about this entire thing is minimum wage no matter if you got a college degree or not is between $15-$25 maybe $30 if you’re lucky and with that salary, you still cannot afford the lifestyle in the middle class today
Actual reason: the owning class has access to an exceptional amount of information now, and obviously, power. They know how much you get paid, how much you need to need to spend to survive, and keep the two as close to the same as possible. Notably, this amount was less in 2020.
Are you implying they care if you can afford it, bc that is the farthest from the truth
@@user-zo9ld9jo2q Only insofar as they realize it's generally not good for them to have a shrinking labor force.
One thing being left out of this is also companies bringing people back to offices. If you let the people who can wfh just wfh there will be less people on the road which means less miles driven, less rush hour traffic when people are groggy and pissy, and overall less congestion. All means less opportunities for crashes to occur which means less claims.
Can't have THAT now, can we? We have to justify the existence of all that commercial real estate that investors are worried about.
That is happening though. Commute times post covid here in CA are lower
They should stop hiring celebrities for their commercials, I don't need danny devito or arnold telling me state farm can save me money
This video spent a lot of time going over many reasons but mostly ignored profits. The bigger insurance company's had increase in profits. That money can either go to the customers in the form of reduced rates or to shareholders.
The issue here isn't just the high cost of car insurance, but also a family needing 4 cars - we don't have feasible alternatives to driving in many areas of this country, so in order to have independence everyone needs their own car.
They have 4 cars??? they must have really good paying jobs.....Insurance shouldnt be an issue😢.
@@peekaxu4352 You didn't watch the video? The family in the video was clearly a low income family that was living beyond their means.
They are skyrocketing because those who have passed laws to make insurance mandatory are failing to police the providers of said mandatory service.
And those ppl. Still Dont have coverage
keep voting democrat at your local level
Everyone drives here in the US. We need more public transports like train, trams, bullet trains, etc. I can't believe the hurdles we are facing in Texas to build high speed trains. It's ridiculous!
Eww public transit is gross. Shut it down!
@@tjts1forcing middle class families into debt and making them pay insurance is even grosser. Better public transportation is a solution for middle and lower class families
@@jameslongstaff2762 public transit is just a handout to the lazy.
We have as much public transit as we want. The US isn't dense enough outside of the cities to support any more. You can't put in a bus stop or train station for every little farm and cabin. Trains had their day but we chose the greater convenience of cars. My car can take me where I want, when I want with who and what I want. I don't have to share space with strangers. I'm not stuck to a schedule and route. If I want to make a stop or a detour, I can.
@@jameslongstaff2762nobody is forcing anyone into debt…. You don’t have to buy a car with debt and a cheap car is cheap to insure.
Can't wrap my head around it. My car's value depreciates yearly, there are no other alternatives to driving in my area, no accidents or tickets........yet I am expected to accept a 30% increase. Truly amazing.
Car dependency is a scam that the oil and car lobbies want to continue. The solution is zoning reform to allow dense walkable neighborhoods to be built
The fact these companies are showing record profits tells u all u need to know. Its not reckless drivers or vehicle costs, its corporate greed.
Need reliable public transport so people aren't entirely at the mercy of insurance companies....
E-bikes
That won't happen in the US.
People love the freedom of driving.
The only way to fix it is autonomous driving. That time isn't too far away.
@@wt9653 completely wrong. If transit is designed to be more convenient than driving, people will use it.
yet these people are fighting against any infill multifamily developments in their areas which would make possible public transit, because it "ruins their neighborhoods character". And then they are fighting against public transit as well. These people are get what they deserve.
@@wt9653autonomous driving ? Be for real 😂
My insurance went up over 100% this year. It always used to be $95 now it’s $200. Never been in an accident or even gotten a speeding ticket. When I called liberty mutual to complain they said it’s because maryland drivers are notoriously bad and many are uninsured so the extra cost is to help cover the uninsured. 😒 once again people are punished for doing the right thing smh. The only way to keep your costs reasonable is to switch companies every year or two
Im also in MD. The insurance is twice as much here as Delaware and Pennsylvania. I ended up using a friends family’s address in southern Maryland and my insurance went down I think bc it’s less populated than DMV/Baltimore
"It has also coincided with higher stock prices for the nation's leading auto insurers." - They're "maximizing shareholder value" at the expense of literally everyone.
I was paying 256 a month for all the insurance i could buy, just for my mini to get hit and just crumpled the door. 56k miles somehow a total loss. Claims adjuster valued it at like 6k less than what i owed and it ruined me financially. Guy that hit me had no license or insurance because he was an illegal immigrant. My deductible was 500 dollars also.
Gap insurance much??? If you’re upside down on your loan to such an extend. 6 grand is a lot.
@I_know_what_im_talking_about it was my first time buying a car. I just bought all the insurance I could from geico. I had never even heard of gap insurance but you gotta do that through the dealership(I found out after)
Cars are becoming more expensive to buy because owners push for driving a personal living room on wheels, as well as more expensive to repair due to the increasingly integrated designs required to keep it reasonably safe to crash in. This partially explains why insuring them has gotten more expensive too.
Not to mention a “standard” option is not free. It drives up the cost of the car. Everyone is happy that things like back up cameras are legally mandated, but it’s driving up the cost of production
@@nicholaskenny4684not to mention that a lot of cars don't really need more than 100hp to reach highway speed limits. Backup cameras are nice, but it drives the cost up. Same goes for power door locks or power windows.
I remember around 2006 the auto industry was mandated to get to a certain MPG for any and all vehicles by 2012. And I distinctly remember listening to an earnings call from either Ford or GM (doesn't really matter who) where they explained that they were simply passing that cost onto the consumer. And that has been the case for every improvement since. That's why an entry level new car today is $25,000.
Now that yer all addicted, physically, mentally and financially to carbrained culture, they can easily wring more cash from your wallets
Tesla vows to close the loop with making a nearly single-piece, injection-molded car design that you basically can't repair, they're almost there now. Ding the bumper and it's $10K to fix - unless they can argue that it damaged the battery. Then the car has to be scrapped.
There’s no reason why insurance companies need to keep having record breaking profits . I had to deal with Progressive recently and they were terrible , made every part of the process a pain so they could pay me as little as possible .
Start an insurance company and show us how it’s done.
Educate yourself on inflation. Profit increases as inflation increases as the purchase power of the dollar falls. Don't be a noob.
They did it to you too? I’m paying $658 for insurance for two cars. It’s crazy!
When I started working a few years ago it was insane to me that you especially as a younger person need a car in most of the country to have a decent job to live even to have low paying jobs a lot of the times and yet those jobs don't offer to cover or reimburse you but yet you need that vehicle to get there and work for them and then you need the insurance to be legally allowed to operate it despite it being expensive while you have a low paying job while your cars require regular maintenance some brands more than others but you're forced to shell out a good chunk of your low paying job to do so so you can keep said low paying job while paying the insurance. All of this plus whatever other expenses your job is supposed to cover to keep you alive and not homeless.
Maybe if you knew how to write a sentence and use periods you'd have a better paying job.
1:29 anyone else catch the pivot in data sets to make a point? 1st data point is emergency room visits and the 2nd are accidents reported... Definitely not comparable in the least.
I used to pay around 65 a month for my 2011 Ford Taurus. Now I’m paying over 140 a month for a 204k mile + vehicle 3-$4,000 is the value of my car. I’m paying more than half of my cars value (1,800/year) for just liability coverage and that’s the lowest rate I got from over 7 diff insurance companies. It’s ridiculous
Woah that is crazy. I was paying $108 2 years ago. I just renewed for $180. Last 6 months it was $165. I tried calling other companies & it was higher. So unfortunately I’ll just have to stay until something changes.
oooh look at you driving a Taurus that is 7 years newer than mine. Remember, your car registration is about as low as it goes, and is very, very unlikely to be broken into. If you owned a 2019 or newer vehicle, you would be paying a whole lot more.
@@reallyluckygirl1$180 per month? That's pretty high. What car do you have?
I pay $327 for 6 months on 2 vehicles. Comprehensive for my 2023 Kia Sportage hybrid and liability for my 2002 Toyota rav4. And I use progressive. What am I missing?
@@ryanlak1234I’m paying $1,222 for 6 months ($203/month)for my 2009 Lexus IS350 😢
This report should be primarily focused on the profit margins in the industry and CEO pay.
That's the path to Venezuela approach. lol
You can critique and hope to regulate corporate greed with out chuds screaming “socialism” the two aren’t the same.
Profit margins are 3% of revenue. A little bit of the rest is towards operations than everything else gets doled for payouts to medical and repairs.
@@francismarion6400Bullshit.
Allstate doubled my premium when I wanted to renew this year, that being said I have an excellent driving record. So switch insurance company
Yes. Do it every 6 months and you'll save thousands!
Insurance costs so much because the government forces you to buy it. If they actually had to provide a product people wanted to buy, the industry would look a lot different.
Big businesses have too much power to change prices. Also, the way we've designed our cities where we're all dependent on cars makes this situation even worse.
All but 11 states have to have rates approved by that state’s department of insurance. Also, by law, rates have to be based on loss costs and not the insured demand.
I blame consumerism. Everyone wants the new luxury vehicles but not the price that go along with insuring it. The newer your vehicle the more expensive it will be along with the make of it. My insurance has basically decreased with each policy renewal and that’s because I get older and my car gets older. I also drive a basic vehicle.
Consumerism is icing on the cake. The whole reason this is even a problem is because people in the US are basically forced to have a car to get around and have a job. Ironically it’s the opposite of freedom.
Blame lack of proper city planning and under investment in public transportation. Easy access to public transportation is desperately needed everywhere in America.
My car turned 10 years old this year and it rose by $20. My oldest car is 24 years old this year. It also went up $20. This is statefarm, which is a notoriously bad company but it's comparable to other offers as of last year. I also live in a state where car insurance is mandatory.
1:31 since COVID i totally agree. People are driving 30 plus over the speed limit on the highway is the norm, even on some cities streets!
Been a trucker for 25 years and YES people now since Covid drive like bats 🦇 out of hell and I get to see big mayor accidents involving big trucks almost everyday something didn’t see before
I drive an old car, a 2000 Taurus. It has low miles, and when I bought it about 4 years or so ago it had about 77,000 miles on it. I currently pay $57 a month for insurance through State Farm. I switched from Geico, which was about twice what State Farm is charging me. It pays to spend some time on the computer to look up rates and call them to see what you can do to lower your rates. Insurance goes up periodically and if you don't pay attention, they will overcharge you for years. Rates are not all the same, believe me. I only have liability, as the car is not worth a lot of money. It pays to find a car that is older and has low miles, rather than getting a snazzy newer car that you have to insure because it's worth a lot. That's my opinion. If you can find a job closer to home or do remote work to lessen the wear and tear on your car plus gas, you will be much better off. We must do what we can to fight these insurance rates for both cars and homes!
So it’s a law that you have to carry it, but prices and redlining are completely unregulated in the insurance industry, and the profit margins are wildly out of control. The big insurance companies can essentially charge whatever they want whenever they want, and dropped you at a moments notice for no reason.
Cuz Insurance Companies gotta keep that infinite growth facade going for investors so they raise rates to show quarterly growth. It's not complicated. They're in it to make money plain and simple
And you got to work for???? Money? So you’re in it for the money too.
Companies are in business to make money. Infinite growth is possible and should be strove for.
@bwofficial1776 Business is based on the notion that you can enjoy infinite growth in a finite system, but in biology, that behavior in cells is known as cancer.
Get this - 61 years old, perfect driving record, been with Farmers for years, no changes, no tickets or claims in over 25 years, 15 year old car paid off worth a couple or few thousand, went from 862 to 1,500. No reason. Will be calling around.
I owned a hellcat and another vehicle with another person on my insurance and in 2022 I was paying $140 month for full coverage. Today I am paying $300 when I renewed.
The bundle doesn't save u money.
I have 2 different insurance companies.
1 is cheap on vehicle's, the other is cheap on home
But if you want umbrella insurance, you’re screwed because most companies want you all on one insurance company to give an umbrella policy.
@@Jonjones520I had the same experience for umbrella.
Your experience / claim doesn't mean that's true for everyone.
@rogergeyer9851
my house insurance of 2k a yr wanted 4k every 6 months for my cars.
My car insurance is 900 every 6 months and they wanted 3800 every yr for home.
How the hell is Bundling gonna save me money.
Both ran my history and everything . They Bundle all together.
That's what I got from both insurance.
I Keep them Separated
It's true
4 cars for a 4 person household is insane. What a way to live.
4 full time jobs
@@tonytone5300why are the parents paying for the other two cars then?
Also why are the leasing the cars, just by two old cars for the kids.
Those kids have nicer cars than me, the poor just make poor decisions.
People have to get to work, and they have to have reliable transportation. Stop judging people based on your assumptions
@@rileyjoseph3488 more of a judgement of this country than of these particular individuals. People are literally trapped in debt just to meet their daily transportation needs. And y’all think it’s freedom!
@@davidfroth financial education needs to happen in public schools, and we need to get our culture back on track to frugality. Consumerism is not sustainable.
This is an excellent presentation because it is so right on. Here in Tampabay Florida I have USAA and their insurance has gone up exponentially due to my high zip code increase in traffic accidents. Neve mind in the past 30 years I have never had a ticket or accident. It is the prospect of me having one that causes the increase.
As a pedestrian I can see more crazy drivers. Bicyclists have become more reckless too. In 2019 I spent 3 days in the hospital because a bicyclist came down a hill at 50 miles per hour, ran a red light and hit me in the crosswalk. I had four broken ribs, a punctured lung, a sprained neck and four spokes in my left leg and thigh. The bicyclist was thrown 40-50 feet and tumbled to a stop, ran back, kicked me where I was lying on the ground, picked up his shattered bike and ran off. A bum then tried to steal my phone and wallet while I was calling 911. The police estimated his speed from the surveillance video. They were unable to identify him, however the bum is well known to the police.
I was surprised that only Ca, HI, and MA restrict credit score-based premiums.
Which is just subsidizing idiots. There is a strong correlation between low credit scores and irresponsible behavior.
@@SerenityNowhere shut up with your conservative BS.
@@SerenityNowhere Low credit score means that you're an idiot with debt. Not that you're an idiot driver. So raising someone's insurance rates based on their credit score is like an employer denying you a job at age 25 based on the SAT scores you got back in high school. Sure, in a high-tech industry where you'd need to go to college, people with high SAT scores would tend to perform better, but doing so would lead to hiring a lot of people who peaked in high school and barely passed college, while not giving people who did poorly in high school a chance if they did well in college.
@@vanyac6448uh you realize you can get demoted a job for your credit score as well right? Direct 1:1 comparison there
Peaked in college... ...we`re not talking about jocks and promqueens. People with high SAT will not (on average) flunk out. The stupid people from my high scool are still stupid.@@vanyac6448
Sort of surprised they didn't list the increase in people doing gig delivery (e.g.; UberEats, Doordash) as a reason for rises in crashes. It seems like an increase in people making time-sensitive deliveries would increase hazards. You have people who want to get a delivery to a location quicker for better tips, and who also get alerts/request for new deliveries while driving. It seems like a recipe for increased accidents and/or reckless driving.
hot take here: Push your representatives for better mass transit; this is applicable to urban and suburban residents (rural is difficult to say the least). Fewer cars means these insurance companies can no longer yoke you, the consumer, with ludicrous bills to pad their ever-increasing profits. Especially since these companies will not have your back when the chips are down and you will have to sue them in cases of serious injury or death.
I sold used cars for years and wrenched since the 1970s. There are many ways drivers can save money so I do. First is choosing a (proven make and model with a the most reliable drivetrains) used vehicle with low insurance costs you buy with only one concern, mechanical reliability. Most car buyers do no research and are "aspirational", buying cars they imagine impress other people. The less your vehicle books for the less collision insurance costs. Saving money on your vehicle means controlling all the O&M (Operation and Maintenance) costs throughout ownership.
Be both informed and ruthless about money if you're not rich. That's also the way to (eventually) have plenty of toy money on a very modest income.
Bs. It's just good old fashioned price gouging.
And they made record profits, so obvious.
I can see you failed Econ 101. Price gouging would mean that there is an investment opportunity for someone to come into the market and undercut the current companies.
Gouging by the unions whose pensions are also funded by increased dividends. You are just an all around lower kid.😂😂😂
@@SerenityNowhereInstead, all of the companies are colluding together to artificially raise prices for everyone.
@@sixfootse7en248Moon landing was a hoax too, right? Have you seen the expense required to fix an EV or have to total it after a minor accident? Never mind the fact we have some of the highest inflation right now too.
Car insurance is scam. This one area that needs to be regulated and not-for-profit.
Agreed, but to make it non-profit would be almost impossible. Insurers need to have large reserves.
I got in a head on crash some old man hit me with my 2 year old in the car and the insurance wouldn’t cover the damages so I had to scrap my car and get a new one so….”I was not in good hands”
What you didn't explain is why good customers without any accidents keep getting increases. The calculation of cost involves all population of good and bad drivers. Meaning bad drivers causes accidents and spike the claims to repairs and hence the cost annually. Good drivers should be reimbursed at least end of the year since the prediction of accidents is not accurate
Look up CEO/CFO bonus packages were for these insurers; they’re doing pretty well in my opinion
Living in NY i was constantly perplexed when people from suburbs laughed at my rent price. Rent is the only thing that us expensive here, the rest is dirt cheap plus i can get around ny on my bike. If you add up car lease insurance on top of your suburban home you are paying even more
Yeah, but their money is going into something they will eventually own, which is their home, so they’re not losing all of it.
Yeah paying more for a home vs a NYC box to live in lol. And you don’t even own it, you’re just renting. I’m perplexed that it’s confusing to you the price differences and how the stuff you listed doesn’t make up the crazy gap NY charges.
Rent is not even that expensive in NY
Sorry need to specify i didn’t mean to compare renters and owners. Thats apples and oranges entirely. I meant people like my trucker friend who moved to NC from NYC he rents a condo in a gated community. As for myself i plan to retire in serbia or somewhere in eastern europe close to greece. Housing is very affordable there by renting and making money in new york i manage even to save money which should be enough for a small house close to Belgrade
@@ZolgeistAnd what will you do with the value of your home? Sell it and live on the street?
$3,100 / 6 months = $517 a month. That’s $129.25 per driver, assuming they all work at least part time, they aren’t paying all that much for $80-$100k worth of vehicles/loans.
Thank you, CNBC !
another factor is people who don't have insurance and cause car accident. Those people don't get held responsible because it civil and cost too much to go after them.
42,795 traffic fatalities in 2023 almost equals to having 10 jumbo jet plane crashes every month. US is at the top of the ranking in motor vehicle car deaths. And the fact that car manufacturers keep making them bigger and heavier only contributes to the ever increasing number of road casualties. But again, we're USA, we're #1
We have the most cars, of course we're going to have the most crashes. That's how stats work.
Fatalities per miles driven are much higher in the US than in Europe. That is an apples-to-apples stat you can easily look up. Maybe don’t be condescending when you have no idea what you are talking about?!?
I am an American and have lived in Europe. America has a lot to learn from Europe as far as how to make roads safer. That’s what the stats say.
Because in Europe, they don't let idiots behind the wheel. German requirements are so high that most Americans would legally not be allowed to drive on German roads. The requirements don't really drop off until you exit Schengen
At 1:40 why did you switch from ER visits to crashes total
Leasing a car is truly a waste of money. If you wish to save on car insurance... buy mechanically sound vehicles at least 6yrs old and set some money aside for repairs and regular maintenance. We've done this and have a 2011 Cr-Z (214k miles), 2008 Honda Pilot (166k miles, '96 F-250 (215k). Total is $515 for 3 vehicles and 2 drivers. All vehicles are paid off and run well. -- Nice cars are nice, yet aren't an investment as they lose so much value over time. Plus, the interest does nothing for you. Buy something old and cheap, well taken care of and they are out there and pay in full if possible. Cost of living is a choice still for most of us in America. If it's too much do without. None of us care what you drive. We're more worried about our cars.
Lawyers making millions in claims for whatever "pain" their clients are feeling after a minor collision.
I pay 1500 for a car valued at 5000. The reason? 2M in liability coverage.
People think they are "smart" for claiming max liability on every accident.
People really don't understand this concept they say just be uninsured and then they get into a minimal fender bender and get sued for 6 figures and they're ruined from that moment forward.
I went from full coverage down to limited liability and I'm paying $125/month. Insurance companies quoted me $600-$800 for full coverage just for one car. Back in 2019 I paid that amount for full coverage. I wish I could stop driving but it's hard living in such a car-dependent city (Houston). I drive significantly less than I used to. I'm making about $80k/yr and barely keeping my head above water. Hang in there everybody I know this current state we are living in is depressing but something has got to give. This is not sustainable for anyone.
I’m 27 and a new driver. I should have gotten my license earlier during the years I was in college and didn’t drive because my premium is insane. I can’t get a new car because even if I get a cheap $15k car on a loan, my insurance is $500-700 per month. I just want to get a modest car, not pay $1k a month before I even get to drive a car.
thankfully, i live in NYC, so there will never be a need for a car. as a new driver, i've been quoted over $6000 for 6 months for a 1989 honda accord. no thanks. insurance wont get a dime from me. enjoy!
And what benefits do we get from their profits? The product they sell isn't improving. Time for a public option.
Buy an e-bike and stick it to the insurance companies...
If you own shares in the company you get your share of the profit. If you don't own it then the profits aren't there to benefit you, beyond the benefit of them staying open and providing you with a service you need.
For a long time I have been saying, If you live near public transportation and can make it part of your lifestyle then eliminate your automobile from your life.
Enjoy taking the bus. I'll drive LOL
Yeah, no.
@@paul9912 Pretty childish response. I love cars but I agree that there should be viable infrastructure for getting around without a car. Plus the more people utilizing public transport, the less cars on the road causing traffic.
@@paul9912 Truth!
@@zaspalia okay then enjoy taking the bus like I said LOL I'll continue to drive my Range Rover LOL in comfort and on time lol
One of the issues is manufacturers are making it increasingly difficult to repair vehicles with more sensors, computers, and specialized tooling. Some parts like computers can only be sourced from OEM.
There are plenty of people complaining about how their rates doubled over the last two years that perplexingly forget that their rates were cut in half during the pandemic...
People stopped driving in 2018/2019 because of the pandemic, insurance rates fell as expected; nearly cut in half.
Then, as more and more businesses started forcing employees to come back to the office in 2023/2024, more people started driving, and predictably, insurance rates rose to account for this.
Insurance rates are RETURNING, to what they were back before the whole pandemic, in order to match the costs of covering people.
Gas prices did the exact same thing.
Those that budgeted on the pandemic pricing, while not having the foresight to expect the prices to return, are the ones that are hurt most by this.
A solution to this problem is building a better public transportation system that isn't reliant on cars.
Not surprising given all the horrible, crazy drivers out there. I’ve been driving for 50 years, and the level and frequency of stupid, risky, and just plain horrible driving behavior is off the charts. Do not look for driver courtesy these days. It has forsaken these lands.
Nobody's connecting the jump in accidents to the fact that repeated Covid infections damage the front temporal lobe of the brain. Add that to how much more expensive newer cars are to fix, and it's yikes all around. Actuaries be actuarying.
The fact that many of cars built since 1995 are extremely fast, and drivers like they are racing, doesn't help.
Become car dependent -> charge us more for it.
I work in personal lines insurance. Can confirm the information in this video is accurate to the information that is shared with the workforce. On top of that, working at these companies has become so incredibly stressful from the ever-tightening belt.
I feel so bad for the highlighted family. NJ has some of the highest rates in the nation.
My last insurance policy renewal from Farmers was $1,200+ before I switched insurers last year. This was with a safe driving record and a used car I have fully paid off.
The same reason medical, house, life, etc. insurance have all skyrocketed. Greed.
Are you kidding me? They are comparing a period when we were all in lockdown to the following year?
Embarrassing…
What does credit score have to do with your driving habits?
If leasing an auto requires full coverage, the first step here would be to stop leasing, and never get full coverage. Only do liability coverage. My dads GMC Safari that is very old is insured under my home plan, and adds an additional $700 a year about. I mostly use my ebike to get to work, so I hardly drive the van, but we worked out the first car discount on my home coverage would be cheaper all things considered in allowing me the liability coverage to drive at all. This is less total money than if I were to be added as another driver onto my dads insurance plan. It's hard to explain but it makes sense.
Driving is expensive, and I think ebikes do have great potential to replace many car trips.
Perhaps the family could investigate saving money by strategizing their car usage? Like they could combine errands with their commute so they don't have to make "special trips" as I would call them, they could see if there is any flexibility in carpooling with each other if their schedules match up. Maybe they could look into how they could use an ebike to supplement or replace car trips. I know these ideas can be an inconvenience, but it must be weighed against the immense cost of car ownership. I know there is an opportunity for great savings here if one of these cars is removed, and I think if creative solutions like the ones I mentioned were explored above, there is feasibility to do this.