A year ago, I paid $1,740 for insurance for three cars for six months. We’re all good drivers, and we live in Southern California.
But in October 2023, the price went up by 9.8% to $1,914 for the same period. Today, I got my new policy, and it’s gone up by another 26%. Now it’s $2,411 for the next six months. Nothing has changed - no accidents, tickets, or claims.
Has anyone else experienced these kinds of increases? It’s really frustrating.
Hi there, General inflation has driven up the costs of auto repairs, parts, and labor. This increases the expenses insurance companies incur when paying out claims, which in turn raises premiums to cover these higher costs
Yes, I agree with this. The premiums are being affected by external factors and not the insurance companies
Advances in vehicle technology and the cost of auto repairs have increased significantly. Modern cars often require more expensive parts and specialized labor.
Yes, and the situation is expected to deteriorate further. Because the insurance commissioner wants to secure re-election and satisfy consumers who don’t grasp the intricacies of the system, numerous insurance companies ceased offering coverage in California due to its unprofitability. Consequently, there are fewer options available, and the remaining ones must significantly raise rates to avoid withdrawal.
Your best course of action is to shop around, but be prepared for several years of substantially high rates. Improvement may not be forthcoming, but it’s common knowledge that living in CA is expensive. This is just another aspect of it.
Hi Barbara!
It’s certainly frustrating to see your car insurance premiums increase significantly without any changes in your driving record or claims history.
This is a common experience for many drivers, not just in Southern California but nationwide.
Several factors could be contributing to the rise in your insurance costs:
The economy has been experiencing inflation, which affects businesses across the board.
Insurance companies are not immune to these changes and may increase premiums to cover their higher operational costs.
Recent data suggests there’s been an uptick in traffic accidents, leading to more insurance claims.
This trend can result in higher premiums for everyone, as insurance companies need to balance out the payouts.
Modern vehicles are equipped with advanced technology, making them more expensive to repair.
This, combined with the increased cost of parts and labor, can lead to higher insurance settlements and, consequently, higher premiums for policyholders.
In California, rate increases have been approved for several major insurance providers, which might explain the higher rates you’re now facing.
While these factors don’t directly address the personal impact of increased costs, they do shed light on the broader industry trends affecting insurance premiums.
It may be beneficial to shop around for insurance quotes or discuss potential discounts with your insurer to ensure you’re getting the best value for your coverage.