Navigating the Future of Car Insurance: Usage-Based Rates, Tech Innovations, and the 2023 Nissan Versa

Speaker 1: Welcome to another In Wheel Time Car Talk podcast, a 30 minute mini version of the In Wheel Time Car Talk show that airs live every Saturday morning 8 to 11 am, central Live on my heart radio and the smoke and mirrors network. It's the in wheel time car talk show coming up. We talk with Sumit Chauhan of CerebrumX, on climbing insurance rates. Oh, you got in your new bill yet. Have you renewed your insurance yet? or they renewed you don't need. No, we're gonna talk about that Also. I drove the 2023 Nissan Versa. Give you my impression of it. We'll also have the cruise in calendar and Conrad has this weekend auto-hinder Auto history and I'm gonna bring you the stories making automotive news headlines all just ahead in this hour of the In Wheel Time Car Talk show. Howdy, along with Mike out of this world, Marrs King, Konrad Delong. We always need more. Jeff Dziekan, I'm Don Armstrong. Thanks for joining us on this Saturday and joining us in a repeat performance, but a different subject is a fellow by the name of Sumitt Chauhan. Good morning. 

Speaker 3: Hey, good morning. How are you? 

Speaker 1: Very well, thank you and good to see you and thanks for joining us today. A different subject today We're talking about climate insurance. Climate Climbing, climbing is sure. Well, climate insurance I guess we'd kind of go hand-in-hand with climbing insurance rates on your car. 

Speaker 3: Yeah. 

Speaker 1: Yeah, well, you know what it was a good night for me last night. So just shut up over there too much tequila. 

Speaker 4: Well, yeah or not enough, one of the two. 

Speaker 1: Much and a day's not open exactly. So, Sumit,Ii know that my insurance Renewed this year. I I took a hit. If you willI, I'm gonna call it that. I don't understand why insurance companies, and Other companies for that matter, don't actually program in increasing rates at a reasonable rate. But some of these rates, from what I understand, are up like 15% from last year or even six months ago when your insurance renews. Yeah, what is up with that? Why did they do that? they give themselves a bad name. 

Speaker 5: Yeah. So, first of all, thank you for having me again here, and this is obviously one of the topics that is very close to the heart of everyone who works at CerebrumX, because insurance is one of the key verticals for us. I think I would start by saying that you know, i don't know what was the issue with your car when you went to renew it, but for the newer cars, you know, there is a valid reason for the insurance rates to go up, which is just that the technology that's going into the car, you know obviously is more expensive. The systems that assist in terms of ADAS, autonomous driving, so on and so forth, are obviously more expensive and hence, from a cost and liability point of view, in terms of any replacement, damage, crashes, so on and so forth the insurance companies are taking a much more heavy liability on their books upfront. So that's one of the reasons you will see that, in my view, the insurance rates at a classical level will keep climbing. 

Speaker 5: But what we have to look at is two other things which go hand in hand and which might be able to offset what we see here. Those two things are what we call usage-based insurance, if you're genuinely a good driver and if you allow access to your data in terms of how you're driving whether that is acceleration, de-acceleration, cornering, so on and so forth that will help you in terms of reduction on your premium values. Why that happens just so that you understand the unit economics here is because you know the insurance companies. Once you are able to give them data, it proves to them that you're a better driver. You're able to mark down the liabilities on their books by about close to 20 to 25 percent and out of that 25 percent they would offer about 10 to 15 percent back to the consumer. So you will see a reduction in your premium by at least 10 to 15 percent if you're using usage-based insurance. 

Speaker 1: But let me just take that one step further. So I consider myself a very good driver. I haven't had a ticket in years, and the ticket that I had was an illegal turn. Knock on wood. Knock on wood, what are you talking? 

Speaker 5: about over there. 

Speaker 1: That's plastic. So there's that, and I don't speed. I haven't had any wrecks. So why is that any different than you know everything else? Why do I have to have something plugged into my car? 

Speaker 5: Agree, that Doesn't that prove that on my record. That's an excellent question And I'll try and answer that, you know, so that you understand it. I think that because, because it's very technical. So that's why I said you know, i'll try and answer it in a way that you know everybody understands it. I think if you, if you look at cars today, you will see that when you put it on auto drive, there is something like a collision detect which is upfront, right. Yes, you know you will get that warning when you're too close to the car in front of you. 

Speaker 5: What is happening now is that the number of times that detection, or let's say, a lane change warning or a lane detection warning, comes on on the screen, that is considered as a risky driving. In terms of the algorithms that are out there, you know, which contribute to, let's say, who's a good driver or a bad driver in terms of a driver's score. Those things were never available before. Nobody knew how many times somebody was cutting a lane. Obviously, you know ticketing and everything is different. That's very egregious. But in terms of just normal driving behavior, how close you're driving to the car ahead of you? how many times did you pass on into the other lane without really knowing it. What I mean to say is all those small factors are now going to play a role in terms of how you're considered as a good driver. 

Speaker 1: If that were the case, then I would fail and my insurance rate would be a thousand dollars a month. 

Speaker 5: I understand, and luckily for you, all of us mortals drive the same way. So the algorithms are going to be basically, i would say, measured or threshold, based on how general public drives. So it is not going to ask you to be God or Michael Schumacher when you're driving, but it will ask you to be a better driver and at least tell you where you are going wrong. And if you're able to kind of, you know, take care of those things, your insurance premiums will go down. 

Speaker 1: So I have to tell you. So Mike and I get to drive press cars every week, different press cars. There are some press cars that we drive, Mr. Marrs, you know what I'm talking about here, where I'm going with this. And when the screen comes on, when you start the car, it says this car is monitored by the factory. So, oh my god, if they were to look at my data they might go oh, let's not go loan him a car anymore, maybe why we don't get so many insurance companies are putting the onus on the driver, but it's the uncertainty of the technology is what you're being insured against, so that should fall on the manufacturer. 

Speaker 5: You are absolutely right and I will elaborate on that as well. So let's take the example of Tesla, right, you know that was the first car which had a lot of software in it, which had self parking and the highest level of autonomous driving. Yes, so you can argue very well that, in terms of that car, there is really a very small onus on the actual driver once it's in autonomous driving, which is a fact, right? Yes, then the onus lies on the driver and that has come into play, as I think I mentioned on the last show as well, in terms of self parking and the car banging into somebody else. There are a lot of litigations going on right now where the OEMs have to pay up, you know, for those, right. 

Speaker 5: But the larger point that I'm making is what is happening at a larger scale is the parameters like, as I mentioned, collision detection. The forward collision detection and lane change are going to become integral parameters of algorithms that are going to be used to calculate driver's score, which was not there earlier. If it is in autonomous driving, i think the onus will lie on the OEMs. If you're driving yourself, then the onus will lie on you And, of course, the car you know, is able to track when it is in full autonomous mode, whereas when you were driving, so you can figure out whose fault it was. But right now it's a gray area, i think, as I mentioned previously as well, because you know it is a lot of interchange that is happening between autonomous driving and manual driving. Once we have a clear path as to you know autonomous driving and the highest level of it, i think things will be a little clearer. But we are in that you know kind of transition mode Yes, exactly Yeah. 

Speaker 4: Yeah Well, and then the cost of repairing a car is accelerating so fast. I work for an aftermarket warranty company and my claim is a jester for them. And you know, this week we've replaced a sonar sensor in the forward warning collision in an infinity product. $2,400 for a sensor Wow, just for one sensor, and it carries four of them across the front of the vehicle. So you know that can be vastly expensive just trying to repair a vehicle today after an accident occurs. I'm sure you know the insurance companies. Of course they're in business to make money. And who do they make money from? You and me, Don Armstrong. 

Speaker 5: That's a brilliant point, and I'll give one other example, you know, which aligns with what you said. I think if you're an extended insurance or extended warranty provider, right beyond the first three years of warranty which come from, you know, the OEM then obviously what was happening previously was, let's say, your engine light comes on when you're in warranty, right, the company which was providing that warranty would never come to know of it, because only the driver can actually see that light. Right, the physical light come on, yes, and if he or she keeps driving, you know, with that light on, it will actually lead to much higher cost when it comes to servicing that vehicle or correcting that. You know that problem. What is happening now is because of the technology where you can monitor the car on a constant basis. Both the end consumer as well as the warranty provider know when the engine light comes on, which then they can put the onus on the driver to say that within a day you need to take it to a service center, which is the right thing to do, right, you know, if you don't do that, then your warranty can actually be null and void And from a user point of view, obviously it's also good that if they are able to, you know, clearly show that they took the car in, so on and so forth. 

Speaker 5: There is nothing, you know. 

Speaker 5: There's nothing that the warranty provider can say or do to say that know you were at fault, so on and so forth, because everything is available in terms of data. 

Speaker 5: So I think that is one of the advantages that you saw. And, of course, in a crash scenario, the first thing is to understand who was responsible for that crash, right? So if you have a 360 degree view of what was happening in the car, how the driver was driving and what was happening on the road because you have front-facing cameras as well as cabin-facing cameras and those snippets and feeds are available, you know, at least in a fleet car where privacy is not so much of an issue then you can better understand who is actually liable. Right now, what happens is if two people crash, the two companies talk to each other and they figure out what is the least cost path and nobody really honestly, nobody really cares was actually responsible for the damage. Unless there is an injury to someone, then obviously you get into the litigation for that, so on and so forth, but on a go-forward basis, i think the insurance companies will have more data to really know who was at fault when such things occurred. 

Speaker 4: Right, gms, on-star and systems like that have been collecting that data for years for accidents and stuff And I know that the kind of data that they collect in the systems from my time at General Motors. But I don't think that they are integrating the cameras into that data collection. but I can see that easily happening. with so many cameras and sonars and radars on the cars today. It would be real easy for them just to dump all that in a module somewhere for recovery at some point for litigation. 

Speaker 5: You're absolutely right. I think the reason for them not doing that today is one not many cars today actually have dash cams which are integrated as part of the OEM rollout. Most of the dash cams that you see today are aftermarket devices, so the OEMs don't really have access to that feed, whereas we, as a third-party deal, we are partners with people like LG and also Pioneer, who actually manufactured those aftermarket devices, so we can actually get the feed directly from the camera, obviously with the consent of the end user, and then we as a company and technology and a platform can stitch that story together, as I mentioned, of what's happening inside the car, outside the car and from the health point of view of the car itself. 

Speaker 4: Including. You had talked about in-car cameras, because I know on the GM Super Cruise there's a device that's watching the driver to make sure that they are still attentive to what they're doing and they're not falling asleep or reading a book. 

Speaker 5: That's absolutely right. That's absolutely right. Additionally, what you would see in most of the cars now if you don't move the steering wheel while you're an autopilot, it will give you a warning that there is very less activity and you need to stop for coffee or something. So that was based on the touch mechanism of the steering wheel or any kind of sensors that are installed on the steering wheel. But now, as you rightly mentioned, that technology is transferring to actually monitoring your eyelids, how attentive you are in terms of watching the road, are you falling asleep or are you droopy, or are you looking left or right, and so on and so forth. So that technology would come into play. 

Speaker 4: Are your pupils dilated? 

Speaker 2: I read somewhere this past week that Mercedes-Benz has a feature, or they're trying to develop a feature, where you can change lanes just by moving your eyes. 

Speaker 5: That's correct. That's correct. It's more like gesture control, where you see, by moving your hand left or right, you're able to change screens on which music you're playing, and so on and so forth. So, in a similar way, i wouldn't be a great fan of that technology. But yes, there is technology available where it can detect eye movement and you can control anything with your eyes. I wouldn't suggest changing lanes with your eyes because it could lead to accidents while you're distracted. 

Speaker 1: Or an unintended marriage. 

Speaker 2: You get a fork in the road and you must be cock-eyed to look at something When you come to a fork in the road, take it. 

Speaker 1: So I have to ask you what kind of car do you drive? 

Speaker 5: I drive a Honda and I also drive a Mercedes, so I drive both of them. 

Speaker 1: And so are you connected to your insurance company. 

Speaker 5: That's correct. 

Speaker 1: You are, he is Okay, yeah, and you get a 20% discount because you're such a good driver. 

Speaker 5: Well, not because we are connected with them as a partner or a customer, but, yes, hopefully because I'm a reasonable driver. Yes, i do get that discount. 

Speaker 2: And when they see this, they're going to double his rate. Yeah exactly. 

Speaker 1: Listen, it's always a pleasure to talk to you. What are we going to talk to you about next time we meet again? 

Speaker 5: Well, i think one of the things is how data is going to change when they move deeper into the EV world as well, as smart cities, where municipalities have access to your data for various purposes, like disaster management and traffic planning and so on and so forth. so we could talk about that, but anything interesting as well. 

Speaker 3: I have a question for you, just expectations, if you will, because you drive the Mercedes to Honda. So if you're backing up, can you use your rear view camera through the in-dash screen or do you look over your shoulder to see where you're going? 

Speaker 5: Yeah, honestly, i use the camera more than I would actually look back, so I don't understand the driving test that they have now if they expect you to actually look back and not look at the camera, because most of the cars the rear view camera is a standard feature and I do look at it more than I would. 

Speaker 3: I was taught some of us were taught to look over your shoulder, and even going to some of the OEM events several years ago, whenever they started really pushing the this camera, particularly with the 360 degree. Don't rely on this. Look over your shoulder, watch where you're going. I think, expectations have changed a little bit. 

Speaker 5: Sorry, just one second. I'll tell you why that was because when you look at the rear view mirror and the side mirrors, they had a blind spot in them, whereas a camera has a much more field view in terms of what you can see there. 

Speaker 1: So things are much better with the camera, absolutely including children and stuff behind you that you couldn't say by looking over your shoulder or in your rear view mirror. It's always great to talk to you and we will talk to you here in the next month for our next session. 

Speaker 4: It's greatly educational. thank you, have a great weekend. 

Speaker 1: The COO of a company called Cerebrum X and he's always fascinating to talk to you. I love to talk to this guy. 

Speaker 4: Time now for this hour's cruise in calendar and Konrad has that, so the Memorial Day weekend cruise in at 3 Acres Food Truck Park in Santa Fe, Texas, is tonight at 6 pm. Tomorrow is cars and coffee at current, a Christian church for Westheimer and Katie, and that's 8 am to 11 am. Also tomorrow is the cars and cocktails at Little Woodrows. 

Speaker 1: That's always a good combination. 

Speaker 4: At Little Woodrows of a Timbertec Avenue in Tomball, texas, and then the I don't know if I'm allowed to say this, but the Shitbuck's Cruisers meet and greet at the first Texas bank in Beaumont, Texas. Of course it's gonna be. 

Speaker 2: Beaumont. 

Speaker 1: That's something that you had something to do with in Marrs. 

Speaker 3: No no, no, I didn't name it. 

Speaker 4: That's the name of the car club. I would have named it Duty Box. 

Speaker 1: Or how about Ship Box with a P? How about just skipping it? 

Speaker 4: That's what I do, and then Sunday nights at Freddy's, Freddy's Steak Burgers off of 1960 in Eldridge, the car meetup at the Willis Discount Furniture What you talking about Willis Off at Danville Street in Willis and then Tomball. Local cars meet at 2920 at the Coles Is tomorrow night at 7 to 10 pm. 

Speaker 1: And then next weekend is Chrome and Coffee at the Avalon Diner in the Fountains on 59 Southwest Freeway as you approach 90A. 

Speaker 1: That would be the exit to take. Thank you, sir. Time now for this hour's car review. I drove the 2023 Nissan Versa. This is the entry level sedan from Nissan, available in three trim levels S, SV and SR. I had the top of the line, SR. This is considered a subcompact automobile. Seats five people, including the driver, all new in 2020. Exterior features Cute with the Nissan nose and a sharp looking grille Does look good. Attractive alloy wheels, great lighting front and back Floating roof. Look It's a paint feature on the roof. 

Speaker 1: Yep, and what I liked about it the great overall design for a subcompact. This car's come a long way, trust me. Remember it came Good looking. When it first came out, you went, ooh, it was not. 

Speaker 4: Diverse. Yeah, it was, it was it was ugly, it was a gag. 

Speaker 1: Interior highlights Comfortable and good looking cloth seats. Yay me Yep, because I love those cloth seats. 

Speaker 2: Mr. 

Speaker 4: Cloth. 

Speaker 1: I do, and the new cloth material in these cars And all of them really Just awesome Because they breathe And they're durable. They're durable and they look good. They've zipped it up really good, good looking dash with stitched accents on the dash pad. Yes, in the Versa Wireless charge point for the phone. Eight inch color touchscreen With great graphics. It's easy to use as well As far as cargo or trunk room Adequate for its diminutive size. But also consider the fact, if it's important to you, the trunk opening, the opening itself is kind of small, so you're not going to get grandma's steamer in there Oh steamer trunk. 

Speaker 4: Can you get grandma in there? 

Speaker 2: In the trunk In the trunk, maybe we can? 

Speaker 4: It's junk in the trunk. 

Speaker 1: The junk in the trunk. What I liked? Separate knobs and controls and pods for the radio and the air conditioning. What could use improvement? Nothing. Solid design through and through 1.6 liter four cylinder engine witha whopping 122 horsepower. Oh not bad 114 pound feet of torque. But remember, the car doesn't weigh anything. It has a CVT transmission, which is the real key to getting the thing Runs in the sweet spot. 

Speaker 1: Yeah, runs in the sweet spot all the time. Now, if you get the base model car, then you have the option of putting a five speed manual in it. Well, guess what I would choose? Five speed manual. Miles per gallon Rated at 27, city 35 for the highway, for combined of 30. I got 37.6 miles per gallon over 349.6 miles. 

Speaker 1: Thank you, nissan. Uh-huh, what I liked about it. Hello, fuel economy. What could use improvement? Well, i think, but that's probably wouldn't sell any, except to some idiot like me. A turbocharger option? Oh for a touch more passing power? that would just be me. But how much more could it be To offer that? because the engine compartment's got the room for it, you wouldn't have to change anything else, just put a little turbo on there. Small, it's a little turbo, a little beady ride and handling sporty. What could use improvement? Add more content and offer more options. Course, from there up goes the price. Speaking of price, the base trim price was 2215, not the base model price, just for the versa, bare bones, versa, you want to guess 18? 18, jeff says 18, you say. 

Speaker 4: Hi 16's. 

Speaker 1: Mars is out of touch, but I will tell you that the base model price starts at 15 30. Wow, hello, college. 

Speaker 4: It's the prices right over. 

Speaker 1: You went over over. Yeah, you're not spinning anything buddy So competitors to the vehicle the Hyundai Accent for 16 645, the Kia Rio for 16 750 and the Mitsubishi Mirage for 16 to 45. 

Speaker 2: Even our prices. It was good. 

Speaker 1: Yeah, but pretty impressive little vehicle. So if you're looking for something new with a warranty for your kid to go off to school with, that's that time of year, yeah, then there you go. There's a good suggestion for you, mm-hmm. And that is This hour's car review. I Didn't have one story that I wanted to bring to you, and I don't know why I I go to these stories, but I do because it catches my attention. 

Speaker 1: A former Auto Nation Honda Miami Lakes finance manager has been arrested For allegedly collecting more than $100,000 in deals for vehicles He never produced. Great guy Carlos Ravillo, 51, was charged with one count of an organized scheme to defraud $50,000 or more, two counts of second-degree grand theft, one count of organized fraud for $50,000 or more, eight counts of third-degree grand theft, one count of theft for the from the elderly and four counts of writing a worthless check. According to the Miami Dade County Corrections and Rehabilitation Department, miami Dade Police Department reports contain multiple instances of consumers reporting that they bought vehicles for cash from Ravillo But never received the models or a full refund. Stick them up. 

Speaker 1: Autonation General Manager Armando Ebenas said the dealership has been investigating customer complaints as well. According to the police, ebenes made it clear that Revello was selling vehicles that belonged to the Honda dealership as if they were his private vehicles. Lewis Kenyonis told authorities he bought what he thought was multiple AutoNation Honda vehicles in November 22 for a combined $50,000 in cash from Revello. According to a police report, kenyonis said he never received any of them, but Revello only returned $45,000, so he charged him $5,000 for his time Processing fee. 

Speaker 3: Processing fee, you would think after the first 10 or $15,000 cash and no car you could catch on to what's going on. Bad dealer department. 

Speaker 2: They need a dealership in jail, with the needs of all these people in the But you know what? 

Speaker 1: as many as employees as there are across the United States at dealerships, everywhere, it's only a small fraction, but when something like that happens, you go hello. Is anybody looking? Where was the oversight? 

Speaker 3: Fire everywhere. I mean who gives out $50,000 cash. 

Speaker 2: They go to fine tooth comb. when you go to apply to buy a car, where's the internal fine tooth comb? 

Speaker 4: You would think, at AutoNation being such a national corporate group, that they would have better control. 

Speaker 2: You would think, better security. 

Speaker 3: Yeah, you would have cash like that. 

Speaker 1: None. 

Speaker 2: The one he's at Yeah Some sand. 

Speaker 1: I don't know. Alright Time now for a quick break here on the Inwheel Time car talk show. Back after these messages. Everyone at the Tailpipes and Tacos cruise in at the Lupi Tortilla Tex-Max and Katie, thank you for participating in the best cruise in around and look forward to seeing you again. You'll hear about the next cruise in date right here on Inwheel Time. Next time you're in the West Houston Energy Corridor area, be sure and stop in at the original Lupi Tortilla Tex-Max at I-10 and Highway 6 or the Katie location on the Grand Parkway at Kingsland Boulevard. When passing through Beaumont or College Station, stop in and have Lupi's award-winning beef fajitas and frozen margaritas. There's always a celebration at Lupi Tortilla. Lupi Tortilla founder Stan Hold and his wife Sheila are winning racers on the NHRA Drag Racing Circuit and have a collection of hot rods and classics that everyone appreciates. Look for them at the next Tailpipes and Tacos cruise in. The date will be announced soon and will once again be held at the Lupi Tortilla Tex-Max on 99 in Kingsland Boulevard, just south of I-10 and Katie. We'll give you all the details right here on the Inwheel Time Car Talk Show and online Donations benefit God's Garage. We'll see you then. 

Speaker 1: You own a car you love, well, why not let Gulf Coast Auto Shield protect it? Houstonian John Gray invites you to his state-of-the-art facility to introduce you to his specialist team of auto enthusiasts. We promise you'll be impressed. If you're looking to massage your original paint to a like-new appearance, apply a ceramic coating, install a paint protection film, nanoceramic window tint or new windshield protection called ExoShield, gulf Coast Auto Shield is where Houston's car people go. Curb your wheels Instead of buying new. Why not have them repaired? How about a professionally installed radar detector? Gulf Coast Auto Shield does that too. Get a peek inside the shop and look at the services offered by getting online and heading to GCAutoShieldcom. After yet, stop by their facility at 11275 South Sam Houston Tullway, just south of the Southwest Freeway, and get a personal tour. Gulf Coast Auto Shield is your place to go for all things exterior. Call them today 832-930-5655, or GCAutoShieldcom. 

Speaker 1: The award-winning in-wheel time car talk show is available on the most popular podcast channels out there in 30-minute episodes. We realize our three-hour live show can be difficult to catch in its entirety, so now you can listen every day to a convenient, fresh 30-minute episode. Check us out on Apple Podcasts, spotify, google Podcasts, amazon Music and Audible, along with a dozen more. In-wheel time is the most informative automotive guest interviews and new car reviews, along with popular features including Conrad's car clinic and, this week in auto history, along with automotive news headlines. Our live broadcast airs every Saturday, 8 to 11, central on InWhealtimecom, the iHeart app and on YouTube. Be sure to say hello when we're broadcasting from the tailpipes and tacos cruise in Autorama and the Houston Auto Show, among others. Now it's easier than ever to hear about all things automotive all week long. 

Speaker 1: You're invited to join fellow car enthusiasts in becoming part of the ever-growing InWhealtime car talk family. Don't forget those 30-minute podcast episodes on your favorite podcast channel. That's it for this podcast episode of the InWhealtime car show. I'm Don Armstrong, inviting you to join us for our live show every Saturday morning 8 to 11am, central on Facebook, youtube, twitch and our InWhealtimecom website. Podcasts are available on Apple Podcasts, spotify, stitcher, iheart Podcast, podcast, addict Tune In Pandora and Amazon Music. Keep listening and we'll see you soon.