10 ways to lower your car insurance rates

Car insurance rates are going up — and your driving record has nothing to do with it.

Why? It's not you — it's your car.

We all know automakers have been collecting data from their cars for a long time. At first, the idea was to use it strictly to identify problems. Let's say they notice a consistent pattern of idling problems across a certain model — now they can issue a technical service bulletin or a recall and get it fixed.

Fairly benign, right?

Except that somewhere along the line they figured out they could make money from your data. And these days the losses they're taking on every electric vehicle they make means money is tighter than ever.

It's a lot more effective than other cash grabs they've tried, such as charging subscription fees for amenities like heated seats and navigation (customers got peeved) and getting rid of AM radio (turns out drivers want their AM radio).

The best part is, the customer doesn't even have to know about it.

Who wants this data? The federal government, the police, and especially insurance companies.

Here's an example. Let's say you work in a neighborhood with high crime rates. They see you're there every day, Monday through Friday, nine to five. From that they conclude that your vehicle is in greater danger of being damaged or stolen.

Higher rates for you!

"But I park in a parking garage!"

They don't know that. This is all done by computer or AI.

The computer also makes decisions based on your driving style. Maybe there was a squirrel on the road or there's a pothole you avoid every day. So you make a perfectly safe defensive maneuver.

As far as the computer's concerned, you may as well have been eating a slice of pizza while taking a selfie. Only the inputs matter: The computer records this swerve without knowing why you did it. It adds up, and soon you're not quite the safe driver you thought you were.

The computer knows how fast you drive, where you go, and more. You create that data, but it's not yours. It belongs to the car companies. And I've actually asked car manufacturers, "What are you doing with that data?"

And they always say, "It's secure. We don't just post it somewhere."

"No, but you're selling it to make up for your losses on the EVs nobody wants!"

That's the bad news. Here's what you can do about it.

1. Shop around for insurance every six months

Nobody's idea of a good time, but it can save you money. You can compare rates online with sites like Get Jerry or Progressive's AutoQuote Explorer.

2. Bundle insurance

If you've got renter's insurance, homeowner's insurance, or other vehicles, bring them all together under the same insurer — that can make a huge difference.

3. Pay your premium in advance

Opting to pay your entire premium up front instead of spreading it out over six months can often save you a few bucks.

4. Increase your deductible

Got a $500 deductible? Raise it to $1000.

There's obviously a downside to this: If you do have an accident, you'll be on the hook for $1000, not $500, out of pocket. But if you're willing to assume the risk, it's a good way to keep more money.

5. Go paperless

Many companies will offer you a 5-10% discount if you switch from paper to electronic billing.

6. Get good grades

Got a student driver on your insurance? Some companies will let you save 10-25% if he or she is at least a B student. You just have to let them know. It could be well worth it, especially if you have multiple kids driving.

7. Take a defensive-driving course

We know that having a clean driving record keeps rates low. You can also be proactive about your skill behind the wheel by taking a defensive-driving course.

AAA offers one, as does the National Safety Council and many private companies.

Usually it's just a couple of hours, which are well spent if you can save on your insurance rate.

8. Improve your credit score

Having a higher credit rating can mean lower rates. Sites like Credit Karma and NerdWallet have tips on how you can do this.

9. Sign up for telematics, or usage-based insurance

Telematics insurance means you pay according to how many miles you drive.

I don't recommend this. While you could save money if you drive less, this will also capture other data, which could raise your rates.

Or you could try what a friend of mine did. He would drive his car down the street, park it, and then drive his wife's car, so it looked like he was barely driving his car at all. Did it work? I don't know — but it seems like a lot of effort to game the system.

10. Talk to your elected officials

As I've told you in a previous article, there's a push to install AI cameras on roads to issue citations. Are you speeding? Are you wearing a seatbelt? Do you have a phone in your hand or on your lap? A computer, not a police officer will decide — so no chance to explain yourself.

It's already passed as part of the $15.6 billion infrastructure bill — money going to towns, counties, and local municipalities around the country. So now is the time to talk to your elected officials on a local level and say, "I don't want this, and I don't want to give up my privacy." The more people speak up, the better.