Reader Question: Dirty Daydreams?

Here’s the latest reader question, along with my reply!

Ron asks: Two years ago my insurance company wanted to raise my rates 36 percent. In previous 5 years increases were below 5 percent. Never made a claim. No moving violations. Every agent I talk to gives a different excuse. Is it really because of increased cost to repair more complex cars? And why does uninsured motorist coverage exist when all states could require proof of coverage when renewing vehicle license? I have some regret regarding my most recent used car purchase. I wish I would have hired a consultant to assist in the process. Please keep up the great articles.

My reply: There is some truth to the claims made about the repair costs of newer cars. However, there is more truth to the fact that being forced to buy anything inevitably means paying more for it. What do you suppose the cost of a fast-food hamburger would be if everyone had to buy one at least once a week?

Not being able to say no to an insurance increase made for no justifiable reason – that is, a reason relating  to your risk profile, such an accident or some other legitimate reason to assess you as being more likely to cost them money – is why insurance costs so much.

I have no problem with insurance, per se – just as I have no issue with electric cars, per se.

My issue is with being forced to buy (or subsidize) either thing.

There is a reason why EVs cost at least twice as much as an equivalent IC car – and there is a reason why car (and health) insurance costs 2-3 times as much as it ought to cost.