The Clark Howard Podcast - Episode Summary: July 14, 2025
Title: Auto Insurers Tracking Drivers / Gas Station Credit Card Surcharge Surprise
Host: Krista
Release Date: July 14, 2025
1. Introduction
In this episode of The Clark Howard Podcast, host Krista delves into pressing issues affecting consumers today, particularly focusing on the auto insurance industry's evolving practices and unexpected surcharges at gas stations for credit card payments. The discussion is enriched with listener questions, providing practical insights and actionable advice.
2. Auto Insurers Tracking Drivers
Krista opens the conversation by addressing the significant rise in auto insurance premiums over recent years. She explains that while the industry is stabilizing after tumultuous times during the COVID-19 pandemic—characterized by supply shortages and increased repair costs—insurers are now exploring new methods to offer competitive rates to consumers.
Usage-Based Premiums: Krista discusses the trend of usage-based insurance (UBI), where premiums are determined by driving behavior tracked through devices installed in vehicles. She emphasizes that this approach benefits those who drive cautiously but can penalize drivers with erratic habits.
“If you tend to do rapid stops and starts, crazy lane changes... the fact that you're letting them track you and initially gets you a discount is not going to be your friend over time.”
— Krista [03:45]
Privacy Concerns and Data Tracking: A major concern raised is the invasive tracking practices by insurance companies and automotive manufacturers. Krista highlights instances where companies like GM and Allstate have been scrutinized for selling driver data without proper disclosure.
“Any of the most modern brands know everything. I drive a Tesla, they know every second what I'm doing...”
— Krista [05:15]
She warns consumers about undeclared tracking and data sales, stressing the importance of being aware of how much information is gathered and used.
“That's not okay. As far as shopping, it really is okay to shop for your auto insurance.”
— Krista [05:50]
3. Listener Questions on Auto Insurance
James from North Carolina on Combined Insurance Rates: James inquires about finding more affordable combined car and home insurance, mentioning his current rate with State Farm.
“When I go to some of these sites that claim they can give you a quote, I end up getting a bunch of calls trying to get my business.”
— James [06:39]
Krista explains the challenge of shopping for insurance online due to insurers purchasing shopping services, which often leads to unwanted sales calls. She recommends manually comparing rates using analog methods, akin to practices from decades past.
“We had to put together an analog guide like it's 1975...”
— Krista [07:09]
Ken from Arizona on Credit Freezes and Insurance: Ken asks whether he needs to thaw his frozen credit to obtain the best insurance rates or when switching companies.
“Is the credit need to be thawed then or can it stay frozen?”
— Ken [08:45]
Krista reassures him that in most states, insurers perform soft inquiries that do not require credit thawing, allowing consumers to maintain credit freezes without hindrance.
“It may, there may be occasionally a problem with one insurer in some state...”
— Krista [09:11]
Todd from Maryland on Loyalty to Amica Insurance: Todd seeks advice on whether to remain loyal to Amica or explore other insurance options, noting that Clark has previously recommended Amica.
“I'm wondering if something has changed regarding the quality of their service that I may not be aware of.”
— Todd [10:32]
Krista affirms Amica's reputation for superior customer service and claims handling but notes that their premiums may not always be the most competitive.
“Is Amica going to be the cheapest? I don't think so. Is Amica generally superior to other insurers...? I would say absolutely.”
— Krista [10:48]
4. Gas Station Credit Card Surcharge Surprise
Transitioning to another consumer pain point, Krista addresses the unexpected surcharges some gas stations impose on credit card transactions. She explains that while merchants can legally pass on the cost of credit card processing fees, using these surcharges as a profit center often crosses legal boundaries.
Unjustified Markups: Krista shares her observations of gas stations charging significantly higher rates for credit card payments, far exceeding the actual processing costs.
“They have been charging much, much more. And you got to know this is a rip off going on.”
— Krista [12:51]
She underscores the importance of being vigilant at the pump and questioning any additional fees that seem disproportionate to standard processing costs.
Consumer Responsibility: Krista emphasizes that consumers must advocate for themselves and recognize when they're being unfairly charged, differentiating between legitimate cost pass-throughs and outright profiteering.
“There's always that thing of marketing...”
— Krista [19:56]
5. Listener Questions on Credit Cards and Travel
Trudy from North Carolina on Credit Card Bonuses: Trudy expresses difficulty in managing multiple credit cards that offer signup bonuses but come with high annual fees.
“The problem is what to do with the cards after I get the bonus and the free year is up.”
— Trudy [19:25]
Krista advises letting go of airline-specific cards unless they are regularly utilized. She suggests opting for no-fee cards linked to airlines to maintain active credit without incurring hefty annual charges.
“You dump those cards from Delta and American unless you fly them all the time...”
— Krista [20:13]
Vicki from Florida on Travel Class Savings: Vicki shares a strategy for saving on business class flights by booking mixed-class itineraries and seeks Krista’s thoughts.
“When I choose the lower price seat for the return trip, the entire trip totals the cost of the lower price seat.”
— Vicki [21:33]
Krista critiques this approach, offering an alternative tip to save money by selecting daytime flights and utilizing hotel accommodations, highlighting that sometimes the cost of a hotel stay can be more economical than business class upgrades.
“There’s more and more flights from The east coast of the United States to Europe that are daytime flights...”
— Krista [22:42]
Arlene from Illinois on Fidelity's Cashback Credit Card: Arlene asks about the benefits of a Fidelity credit card offering 2% cashback and whether Fidelity is a reliable issuer.
“Is this a good deal? And Fidelity is they in the credit card business now?”
— Arlene [24:04]
Krista praises the Fidelity credit card, highlighting its versatile cashback options that allow funds to be directed into various Fidelity accounts, making it a flexible and rewarding choice for consumers.
“It's one of the ones we have on our great cashback cards list on clark.com...”
— Krista [24:17]
6. Conclusion
Krista wraps up the episode by reiterating the podcast's mission to empower listeners with financial advice and resources. She encourages listeners to utilize Team Clark's offerings, including personalized advice and various online tools available at Clark.com and ClarkDeals.com.
“We're all devoted to you with a variety of ways for you to be empowered...”
— Krista [25:00]
The episode concludes on a light-hearted note with Krista and a caller humorously discussing cargo shorts, adding a personal and relatable touch to the informative session.
Key Takeaways
- Auto Insurance Trends: Usage-based premiums offer potential savings for safe drivers but come with privacy concerns and the risk of higher rates for high-risk behaviors.
- Shopping for Insurance: Online comparison can be challenging due to insurers' control over shopping platforms; manual comparison remains effective.
- Credit Freezes and Insurance: Generally, frozen credit does not impede insurance rate inquiries, thanks to soft inquiry practices in most states.
- Gas Station Surcharges: Consumers should be wary of excessive surcharges on credit card payments at gas stations and advocate against unfair fees.
- Credit Card Management: Choose credit cards that align with your spending habits and avoid high annual fees unless benefits clearly outweigh costs.
- Travel Savings: Consider alternative strategies, such as flight timing and accommodations, to save on travel costs rather than relying solely on business class upgrades.
- Fidelity Cashback Card: A versatile cashback credit card that can funnel rewards into various investment accounts is a beneficial tool for financially savvy consumers.
This comprehensive episode of The Clark Howard Podcast offers valuable insights into navigating the complexities of auto insurance, understanding hidden fees in everyday transactions, and making informed financial decisions through strategic credit card usage and travel planning.