Auto insurance premiums have been soaring around the country, but drivers in California have been hit especially hard.
According to Insurify, a driver with a clean record and a $1,000 deductible may expect to pay $2,681 for a 2024 auto insurance policy in California, a 54% increase over the previous two years.
“During COVID-19 shutdowns, states like California froze rate hikes. That’s why so many consumers witnessed significant rate increases in 2023 once the restrictions were released,” explained Mallory Mooney, Insurify’s director of sales and service. “Insurers are still catching up, and it’s too late for many of them. Insurers have had to exit some markets entirely.”
Insurance firms report an increase in accident claims and are passing on the rising price of repairs, particularly for newer vehicles with advanced equipment.
Consumer Reports provided some ideas for drivers wishing to save money on vehicle insurance.
- Shop around
- Increase your deductible
- Consider dropping collision or comprehensive coverage
- Take a defensive driving course
- Bundle your auto insurance
Adding to California’s problems is a new law that will increase providers’ liability limits in 2025. That will mean higher payouts for insurance companies, KTLA’s Eric Spillman reported.
California isn’t the only state getting slammed with higher insurance premiums. Rates have gone up across the country.
Maryland has the highest car insurance costs in the U.S., with an average full-coverage rate of $3,400 annually, according to the report.