The TRUTH Behind the Rising Price of Auto Insurance

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So I was asked, I did a bit on inflation. Well, we have lots of bits on inflation here on the program. And I got a question. Why is car insurance so expensive? How come it’s so darn high? How come it keeps going up? Well, there’s a myriad of reasons. And they’ve been kind of piling on one another for a period of time. First and foremost, without a doubt, you want to start tempering the high cost of insurance. We got to do something about all of these tort attorneys.

And the state of Florida, when I lived down there, there was this massive firm entitled Morgan and Morgan for the people. And they’re everywhere now. They’re everywhere now. And their pitch is simple. You know, somebody looks at you cross -eyed, sue them. Sue them. And here’s the actual true story. My wife didn’t even get into a fender bender. Didn’t even cars.

touched bumpers and not even a mark on the car less than one mile. Nope, no one hurt, no problem whatsoever. But all of a sudden the person sued us. Sued us, must have done a Google search or something like that. I don’t know. And then our insurance came in and they for over $100 ,000.

And what did the insurance company do? They’re like, well, you know, we’ll talk it down, but, you know, we’ll settle. And I was like, no, no, I refuse. We’re not settling. I said, do you do a little more homework here? And they did and found out that this person had a history of suing everyone and everyone went out there. The entire thing was a ruse. And eventually we won without even having to go to court.

And most people don’t do that. And quite frankly, you could solve a lot of these problems with ridiculous lawsuits if we had a loser pay situation like they do. Honestly, it’s one thing I really like about the UK. You can go ahead and sue somebody. You lose, you pay their legal fees. And I think that’s a great idea and help with that. That’s one thing. But that’s been with us for a while, even though that continues to grow.

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Do I think anything will be done about that? On a bit of a side note, no, no, the legal lobby is massive and they will continue to pour tons of money on politicians and we will not have tort reform here in the United States because of that. Then Congress is bought and paid for and the legal lobby writes nice big fat checks. Okay, next thing. All of the stuff on your car, all of the stuff that is in your bumpers, cameras,

sensors, all of this stuff. If you get into a fender bender, it’s not like it used to be. It’s a piece of plastic that would pop off and you just pop a new one on or even, you know, back and there was, you know, a metal bumper, whatever it may be. It’s a lot more sophisticated than that. And the cost of fixing cars has gone through the roof because of all of the technology.

Now, you couple that with EVs, which is a whole nother level of technology, especially all of these cars out there that are pushing for autonomous driving. You know, we talked about it here. It was the went viral. The gentleman who got to a fender bender in his Rivian truck and the 40 ,000 fender bender, the $40 ,000.

quote something I mean obscene I forget exactly what it was but it was obscene when it came to fixing his car and all of the things that needed to come off it needed to be done just to fix a bumper. So again we like all of these things we like you know the fact that we don’t have to be competent drivers and we need the car to parallel park itself well we’re paying for it you’re paying for it in the higher price of the car and you’re also paying for it in higher insurance. Watchdog on wallstreet .com.