Speaker 1: California auto insurance rates spike once again, but state politicians
Speaker 1: refuse to allow drivers to get a new discount that
Speaker 1: all the other forty nine states in the nation allow
Speaker 1: their drivers to receive. Coming up, I'll tell you about
Speaker 1: a law that I'm backing to try to fix that problem,
Speaker 1: to reduce your auto insurance rates. So there's nothing requiring
Speaker 1: that you do this. This is completely voluntary. Right now,
Speaker 1: the law says you can't do it even if you
Speaker 1: want to do it. I'm Carl Tomo, Chairman of Reform
Speaker 1: California and a California state legislator, and you know we
Speaker 1: pay more for everything in California. It's because of our
Speaker 1: politicians and their stupid mandates and regulations. They don't seem
Speaker 1: to care about what you have to pay. They just
Speaker 1: continue to add more mandates and regulations on everything we
Speaker 1: have to purchase or pay for just to get by
Speaker 1: in life. That's very true for the cost of auto insurance,
Speaker 1: and that's why California auto insurance rates are going up
Speaker 1: more this year than the national average. Last year, auto
Speaker 1: insurance rates went up sixteen percent. This year, they're up
Speaker 1: more than six percent, and that's higher than the national
Speaker 1: average here is quote. California drivers see third highest car
Speaker 1: insurance hike despite national decline. We have politicians that are
Speaker 1: basically forcing us to pay more than we need to.
Speaker 1: The average California driver now has to shell out two
Speaker 1: and twenty one dollars a month a month for their insurance.
Speaker 1: In the state of California, we are the only state
Speaker 1: that will not allow technology to reduce your car insurance rates.
Speaker 1: All the other states, all the other forty nine states
Speaker 1: allow new forms of technology to provide you with discounts
Speaker 1: on your insurance. It's called telematics. And Tesla is now
Speaker 1: offering insurance for all of their drivers at a very
Speaker 1: cost effective rate. I'm not endorsing them, I'm just saying
Speaker 1: I was surprised when I learned that Tesla was offering
Speaker 1: not only vehicles, but also insurance auto insurance. That's because
Speaker 1: Tesla learned early on that if you put technology in
Speaker 1: the car, you can be a better insurer. You can
Speaker 1: figure out which insure which drivers are a little bit
Speaker 1: more risky, and which drivers are less risky, and therefore
Speaker 1: price your products much more effectively. I mean, you shouldn't
Speaker 1: have to pay because of someone else's bad driving. Record.
Speaker 1: You should only have to pay because of your own
Speaker 1: I will confess I've gotten some tickets and had to
Speaker 1: pay more in insurance that I wanted to pay, But
Speaker 1: that's the way the system goes. So what the insurance
Speaker 1: industry has done for decades is they look at your
Speaker 1: driver's record, your age, how many tickets you have, how
Speaker 1: many accidents you've had, and that then creates a risk profile.
Speaker 1: But what Tesla did with their cars and their technology
Speaker 1: in their cars is that they were able to add
Speaker 1: additional data sets to better price insurance products, giving good
Speaker 1: drivers a discount and well pricing a higher rate for
Speaker 1: drivers that sped and you know, did bad things with
Speaker 1: the car or drove more. By the way, remember your
Speaker 1: insurance company asks you to fill out the paperwork how
Speaker 1: many miles have you traveled? Many of us, you know,
Speaker 1: we go out and we look at our odometer and
Speaker 1: we give the information. But the insurance industry knows, well
Speaker 1: not everyone is truthful about that, so we have to
Speaker 1: factor in a fudge charge. Again, if you actually use data,
Speaker 1: then you can price insurance more appropriately. And that's what
Speaker 1: telematics is all about. Now in the state of California,
Speaker 1: we have legislation and regulations that ban the use of
Speaker 1: technology to report to insurance companies as to what you're
Speaker 1: doing in your car. A new bill is pending in
Speaker 1: the legislature. I voted for it. It's Assembly Bill three
Speaker 1: one one. It's called the Consumer Driving Data Protection Act
Speaker 1: of twenty twenty six. Now what this does is it
Speaker 1: says that if you opt in, then you can use
Speaker 1: telematics for your insurance. So there's nothing requiring that you
Speaker 1: do this. This is completely voluntary. Right now, the law
Speaker 1: says you can't do it even if you want to
Speaker 1: do it. Assembly Bill three one one would correct that
Speaker 1: flaw and allow California drivers to opt in to providing
Speaker 1: data to the insurance company so that they can receive
Speaker 1: a discount, a good driver discount. So again I want
Speaker 1: you to know. It looks at a number of data sets,
Speaker 1: but the number one thing in this bill is it
Speaker 1: is completely voluntary. The opponents of this bill say, oh,
Speaker 1: government's going to allow the insurance company to spy on you. No,
Speaker 1: they're going to allow the insurance company to give you
Speaker 1: a discount if you would like to apply for the
Speaker 1: discount and agree that your data would be shared. If
Speaker 1: you don't want to share your data. You don't have
Speaker 1: to share your data, but recognize with less data, the
Speaker 1: insurance company then has to fall back to some of
Speaker 1: those less complete models for assessing your driving record, and
Speaker 1: they may actually be overcharging you when you could get
Speaker 1: a discount. And look, if you're a bad driver, then yeah,
Speaker 1: you should be paying your fair share. Just saying this
Speaker 1: is a fair and equitable way. Data driven insurance policies
Speaker 1: very smart way to handle the risk factors risk assessment
Speaker 1: for things that we want to buy. Again, this is
Speaker 1: completely optional, it's completely voluntary, but it gives California drivers
Speaker 1: an opportunity to buy this form of insurance. I think
Speaker 1: it's just common sense. What do you think? Sound off
Speaker 1: in the comments below let me know if you think
Speaker 1: Assembly Bill three eleven is a good idea. I'm just
Speaker 1: saying I already voted for it, but more information and
Speaker 1: more feedback from you always helpful. I don't think anyone
Speaker 1: should be against data driven voluntary opt in insurance products
Speaker 1: because the people who have good records and good driving habits,
Speaker 1: they should save some money until next time. I'm Carl Tobaio,
Speaker 1: chairman of Reform California and at California State Representative. Thanks
Speaker 1: for watching and I hope you enjoyed this episode. But
Speaker 1: before you click away, please subscribe to this channel and
Speaker 1: click that notification button so you get updated when we
Speaker 1: post new episodes. Plus, like this video and share it
Speaker 1: with your friends so that we can help spread our
Speaker 1: message across the state.