As the cost of living continues to rise, drivers are feeling the financial strain of increasing auto insurance rates.
During the COVID-19 lockdowns, car insurance rates hit a five-year low due to reduced travel.
However, rates have surged over the past two to three years, leaving many drivers struggling to keep up.
Adrian Garcia, a local driver, expressed his frustration, saying, “It’s just been going high. really high, and it’s just too much. So that’s why I had to put it under my dad in order for me to afford insurance.”
DeAndre Matthews, who earns his living behind the wheel, echoed this sentiment. “The insurance is killing us right now,” he said. His brother Julian questioned the rising costs, asking, “If I’m paying insurance on my vehicle for 20 years and no accidents or anything – where’s all this money going?
Industry sources indicate that the increased costs are due to more litigation between insurance companies and accident attorneys, higher costs for parts and labor, and an uptick in claims.
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In Texas, Attorney General Ken Paxton is suing a major insurance company for allegedly violating privacy laws by collecting location data from drivers’ mobile apps without permission, then using it to justify higher premiums.
Dr. Greg Moody, a cybersecurity expert at UNLV, explained that many apps gather travel data with user consent. “Most of them, if they have a terms of conditions that you agree to, particularly then you agree to it,” he said. “When you say yes, that means you’re doubling down that yeah, they can have this type of access.”
In Nevada, the Insurance Commissioner’s Office stated that insurance companies are not allowed to collect such data without approval and full disclosure.
The Nevada Attorney General’s Office advised consumers with concerns about app data privacy to contact them directly.
