Why is the cost of car insurance rising so fast?

The cost of car insurance is rising at its fastest rate in over 47 years. In fact, from 2023 to 2024, we averaged a 20% increase in 1 year alone. So what’s going on here? In short, vehicles have gotten substantially more complicated & more expensive… and that makes them more expensive to insure. Even if you drive a more economical car, you’re affected by the buying patterns of others.

But WHY have cars gotten substantially more expensive & complicated?

Hyperinflation is certainly a contributing factor. But new cars have gotten significantly more expensive even outside of current inflation. In large part, REGULATION and TECHNOLOGY is driving that upward cost. A substantial part of the new tech in vehicles can be traced to ‘safety monitoring devices’ (aka: nanny devices)… many of which are now government-mandated. Governments have also put incredibly stringent regulations on emissions, which also drive up cost. So what are we paying for? In the case of all these safety monitoring devices, are they actually keeping us out of accidents? And if so, shouldn’t insurance rates be going down? The short answer is no… to all of the above.

The NHTSA is reporting data…

That even with all the safety sensors, & annoying beeps/boops that come in new cars over the last 5 years or so… accidents, injuries, and fatalities are not decreasing. This data even records Covid years, when less population was on the roadways. So what exactly the hell is going on here? Because all the science & data we’re getting… says that all the science & data isn’t working. In other words, the very government agencies who lobby more-&-more safety monitoring devices that increase the price & complications of vehicles… are reporting (though not admitting) that it’s effectively not working.

We have to acknowledge the elephant in the room…

And really start examining the human element and/or driver skill-level. We have been legislating in the wrong direction. Meaning – rather than training people to be better drivers, we have been fixated on making vehicles that don’t need good drivers. Trying to use technology as a band-aid for human capability & attentiveness. That’s a critical misstep. And the data shows it’s not working.

Politically correct or not, there is a skillset & ability-level that’s required for safe driving. Speed is not the end-all be-all for danger. Yet bad, inattentive, untrained drivers are unsafe even at low speeds. And unfortunately, this cannot be another instance where ‘everyone gets a passing grade’. This is the real, unforgiving world… not t-ball trophies. 1) Unskilled drivers are unsafe. 2) Distracted drivers are unsafe. And we are effectively combining the two & letting it become the new normal. American driving tests are an absolute joke. And all the safety-monitoring technology IS NOT creating better drivers… just more expensive cars & repairs. So therefore…

Insurance rates have increased because…

1) New cars have gotten expensive. 2) They’re expensive because of overly complicated/integrated designs that incorporate tech with every component. Some of that is due to the fact that buyers are tech-obsessed & want an extension of their phone rather than a driving machine. And the rest is because the auto industry is over regulated by our governments. As a result, 3) when these new tech-forward vehicles are involved in even a minor accident, they’re expensive & intricate to fix, and therefore more likely to be written off.

4) Distracted idiots are crashing their cars more than ever before. And when they do, 5) there’s a greater likelihood of lawsuits. Additionally 6), vehicle theft is on the rise. According to stateline.org, between 20219-2023 car thefts & carjackings went up 105% & 93% respectively. And police won’t lay the smackdown, for fear of being the next headline news story. Plus I’m sure there’s some corporate greed, corruption, & capitalizing to fill-in the cracks. And that, ladies & gentlemen, is the cause for your record-high insurance rates.