Brace Yourself for Shocks, California Drivers! Auto Insurance Rates Are Soaring—Here's What You Need to Know

LOS ANGELES (KABC) — Auto insurance rates have been rising dramatically across the country, and California drivers should prepare for higher rates. greater Insurance rates are expected to rise by the end of the year, according to online insurance brokers.

Insurify, which offers auto, home and other insurance products online, released a study that found the average national auto insurance rate rose 15% in the first half of the year, and it expects rates to continue rising, reaching 22% by the end of this year.

Things are getting worse for California drivers. An Insurify study predicts that prices in the Golden State will rise 54%, more than double National average.

“We’re definitely seeing double-digit price increases, and they’re a little bit higher in California than they are in some places,” said Carmen Balber, executive director of Consumer Watch, an organization that has long tracked insurance prices in California.

Although it does not endorse Insurify numbers, it does He does They say auto insurance rates in California are unfairly high.

“Sometimes the insurance department doesn’t do the necessary scrutiny on price increases,” she said.

The insurance department did not want to appear on camera for this report, but issued a statement that said:

“The Department’s rate experts take the lead in thoroughly analyzing each rate change request to ensure that what insurers are requesting is consistent with California law and justified.

While rate changes are approved under the auspices of Proposition 103, if proposed rates are excessive, the Department requires insurers to lower proposed rates.

One reason insurance companies give for raising rates is the rising cost of cars and trucks, but the Consumer Price Index shows that used car prices fell 10.9% over the past year — and new car prices fell 4.4%!

Higher insurance rates are also based on the high cost of cars and how expensive they are to repair these days. Insurance companies also take into account the increase in natural disasters, such as hurricanes and wildfires, which all cause damage to cars and trucks.

If you want to save money on car insurance, do your research, the consumer watchdog said. If you're driving less, and maybe working from home more, make sure your insurance company knows your mileage has dropped.
Also consider driving an older, less expensive car.

But even though insurance rates are higher in California, drivers in other states pay more.

Insurify notes that California is in the middle of the list, with several other states having higher average rates.