George Kamel - The Creepy Reason Car Insurance Rates Keep Jumping

Starting point is 00:00:05 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 10. Also, can we just, why are we still using Roman numerals for the Super Bowl? We should have stopped that like XXVII years ago. It's ridiculous.

Starting point is 00:00:30 Anyway, there's a bunch of reasons car insurance rates are going up, and one of the reasons will give you the creeps, the hebes, the Gbies, maybe even the Bee Gees. 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 MMXVII and more subscribers. Is that even a real number?

Starting point is 00:00:58 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. Babbity boopy. 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

Starting point is 00:01:32 payouts. Ergo, the cost to ensure people has risen, and the insurance companies pass on that cost to you, the consumer. I always get the fuzzy end of the lollipose. 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 in sharing.

Starting point is 00:02:12 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 driver. 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 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 Verisc and LexisNexis.

Starting point is 00:02:43 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 vehicle. 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

Starting point is 00:03:08 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,

Starting point is 00:03:25 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 23-me 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.

Starting point is 00:03:44 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

Starting point is 00:04:03 or jacking up their rates based on data they didn't even know as 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 LexisNexis 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

Starting point is 00:04:29 and the condition of your ignition without your permission. I'm the financial M&M, bro. Mom Spaghetti, Mom Spaghetti. What's the other line? Arms are heavy. Arms are heavy. Weesneek. Arms are heavy. Mom spaghetti.

Starting point is 00:04:43 We sneak. We sneak eyes are heavy. Getting sleepy. Taking nap. Um, shout out. Anyway, so... To find out what day is. your vehicle is capable of collecting, go to vehicle privacy report.com and enter your VIN.

Starting point is 00:04:59 And if you've got a diesel, you know what to do. And if you want to request your Consumer Disclosure Report from Lexus 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 want to opt out of having your info gathered and sold by these data brokers.

Starting point is 00:05:26 So be sure to check out, Delete Me, one of the sponsors of today's video. They remove your info from hundreds of these data broker websites, and they send you an easy-to-read report. And there's a new scam out there where a stranger texts you, by a mistake, and then butters you up until they can squeeze some cash out of you. And it's called pig butchering, which is disgusting. But the idea is they try to fatten you up before stealing your bacon. And all they need is a phone number and a gullible victim. So help protect yourself from the risks of identity theft and online. with DeleteMe. Go to join DeleteMe.com slash George and get 20% off any of their plans.

Starting point is 00:05:58 Or just click the link in the description. And while we're talking about smart money moves, let me tell you about a high yield savings account offered by Laurel Road, one of the sponsor of today's video. You can earn a great interest rate, 5.15% APY right now, and make money while you sleep. Or while you lose sleep thinking about how much data your car is collecting about you. Like seven stops at Taco Bell this month? I'm not judging you, but your car is. And there's a ton of other great perks, too. There's no minimum balance, no monthly maintenance fees, and your deposits are FDIC insured. So go to Laurel Road.com slash George or click the link in the description to get started with an account today.

Starting point is 00:06:33 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.

Starting point is 00:06:47 You're a senior citizen. your vehicle has safety features like blind spot warning. Maybe you completed a driver's safety course, or you park your cars indoors, like in a garage and not your living room. Maybe no one will notice. That's some ways to save money. The next thing you can do is shop around. You're not married to your car insurance policy.

Starting point is 00:07:03 If you don't like your rate, just swipe left and see what else is out there. And I've got a life hack for this one. You should work with an independent insurance agent who will shop around for you among the top companies to save you time and money, and I know just the people. Check out the link below to connect with pros I trust in your area. Another thing you can do is increase your deductible. Most people choose a low deductible because they want to avoid the risk of big repair bills after an accident.

Starting point is 00:07:26 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,

Starting point is 00:07:45 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.

Starting point is 00:08:15 And it won't increase your rate by much, but it will increase your piece. 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.

Starting point is 00:08:35 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 pill 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 want to be overpaying because you still have a teen driver on your policy, even now your teen is now 30 years old with a mediocre job on a PT cruiser covered by a car insurance policy of their own. And make sure

Starting point is 00:09:07 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 want to 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

Starting point is 00:09:41 next time.

George Kamel - The Creepy Reason Car Insurance Rates Keep Jumping

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