California Car Insurance - OMG!

[dogememe]

What is going on here! I've been with Esurance for years, before that I was with Progressive, before that Geico. I'd switch whenever the rates were better. Got lazy so stuck with Esurance as the price always seemed OK. About $100/mo for what I consider to be good coverage. High limits, $500 deductive on comprehensive/collision, etc.

Recently I heard some insurance companies are no longer accepting customers in CA but didn't think much of it - though that was more in refence to home insurance or fire insurance or something.

Well, my boyfriend happened to share with me he pays $250/mo for insurance. I was like WHAT!!!! That seemed crazy to me. I looked at it and it's not minimum but not great coverage limits. Way less than mine. I have mine set high as modern vehicle prices, prices of everything, are high. On a Nissan Kicks. Annual mileage of maybe 12K-15K tops. One incident in the past five years where his parked vehicle was hit. So we tried to shop around. First I used the Jerry app to compare prices as it's convenient. 19/20 insurance providers declined coverage due to "not accepting customers in California at this time" while ONE that I'd never heard of offered coverage at $109/mo. But that was for minimum liability only. Increasing the coverage to something reasonable and added comprehensive/collision and they declined covereage as well.

Then we tried directly on Geico website. They quoted $200/mo and said something about a 15 business day underwriting review. Sounded to me like a kind way to say "no" without specifically saying no.

Esurance didn't even let us submit a quote upon entering zip code and referred to some third party thing I'd never heard of either.

My question is, is this the new norm? How is anyone getting reasonably priced insurance? What to do!? Like, what does someone do if they need insurance now?

 

[atikovi]

Well, my boyfriend happened to share with me he pays $250/mo for insurance. I was like WHAT!!!! That seemed crazy to me.

Women generally have lower rates as they are considered less reckless drivers, at least in the younger years.

 

[The Critic]

You sound a little worked up...

Capacity is tight across the Personal Lines industry, especially in states where profitability is a problem. CA's regulatory environment makes it difficult to seek the needed rate increases in a timely manner while maintaining a competitive environment. As a result, you are seeing many national carriers reduce their footprint in CA (and a few other states) - this means only retaining their best accounts, seeking the maximum allowed rate increase where possible and severely restricting New Business writings.

 

[dogememe]

Women generally have lower rates as they are considered less reckless drivers, at least in the younger years.

Lol. Not a woman I don't see how my rate can be less than half. Same age. Same gender. Same annual mileage. My car is probably only $7K cheaper in value.

 

[John105]

Women generally have lower rates as they are considered less reckless drivers, at least in the younger years.

Tell that to my boss who has had 3 teens get their licenses in NJ, luckily for him, not at the same time. They have only had two cars in the household, but each time the teen enters the picture, premiums go up around 80%. 2/3 teens were female.

 

[dogememe]

You sound a little worked up...

Capacity is tight across the Personal Lines industry, especially in states where profitability is a problem. CA's regulatory environment makes it difficult to seek the needed rate increases in a timely manner while maintaining a competitive environment. As a result, you are seeing many national carriers reduce their footprint in CA (and a few other states) - this means only retaining their best accounts, seeking the maximum allowed rate increase where possible and severely restricting New Business writings.

I find this crazy. I was reading a little about CA not allowing rate increases. But it seems counterproductive to me. Back when I could switch insurance companies and compare prices every 6 months I could choose whatever I wanted. Now, for example, Esurance can jack up my rate any time and I have no choice but to stay? How is that better?

I'm upset because insurance is required yet it's crazy expensive and hard to get? I feel backed into a corner because what if Esurance decides they don't want to renew me next month? Or they decide to double my rate?

 

[John105]

Lol. Not a woman I don't see how my rate can be less than half. Same age. Same gender. Same annual mileage. My car is probably only $7K cheaper in value.

Not that I would agree, but could it be credit score? (I think higher premiums for lower credit score is yet another make believe way to charge more, like the 52 oz. half gallon of orange juice)

 

[dogememe]

Not that I would agree, but could it be credit score? (I think higher premiums for lower credit score is yet another make believe way to charge more, like the 52 oz. half gallon of orange juice)

I'm low 600s, can't imagine that's making my rate better haha.

 

[The Critic]

I find this crazy. I was reading a little about CA not allowing rate increases.

They are, but the process is needlessly slow and convoluted. I can go into additional detail, but this article covers it pretty accurately:

Californians, brace for another bill increase: your car insurance

California car insurance regulators approved some big rate increases in the last six months after a long COVID break. And more are in the pipeline.

www.latimes.com

I feel backed into a corner because what if Esurance decides they don't want to renew me next month? Or they decide to double my rate?

Every state has some notification period required for non-renewal or >25% rate change (varies by state); I believe it is 60 days for CA.

 

[Astro14]

I find this crazy. I was reading a little about CA not allowing rate increases. But it seems counterproductive to me. Back when I could switch insurance companies and compare prices every 6 months I could choose whatever I wanted. Now, for example, Esurance can jack up my rate any time and I have no choice but to stay? How is that better?

I'm upset because insurance is required yet it's crazy expensive and hard to get? I feel backed into a corner because what if Esurance decides they don't want to renew me next month? Or they decide to double my rate?

If CA doesn’t allow rate increases, then, honestly, that’s part of the problem.

The cost of repair has gone up significantly in the past three years. There are a variety of economic and other reasons, but the bottom line is that it cost far more to repair a car than just a few years ago.

So, if the cost of repair has gone up substantially, but the insurance company can’t collect more money, why would they underwrite new policies?

It’s a guaranteed money loser for them.

The cost of car insurance in both Virginia, and Florida has gone up significantly in the past couple years. It’s almost doubled for me.

 

[The Critic]

If CA doesn’t allow rate increases, then, honestly, that’s part of the problem.

If time allows, I encourage you to read the article I posted. The information is accurate. Technically, CA does allow for increases, but its process does not allow for a competitive environment to be maintained.

 

[SC Maintenance]

They are, but the process is needlessly slow and convoluted. I can go into additional detail, but this article covers it pretty accurately:

Californians, brace for another bill increase: your car insurance

California car insurance regulators approved some big rate increases in the last six months after a long COVID break. And more are in the pipeline.

www.latimes.com

Every state has some notification period required for non-renewal or >25% rate change (varies by state); I believe it is 60 days for CA.

So from the article: "Geico, the state’s second-largest auto insurer, after State Farm, got a 6.9% rate increase in December, which will mean a premium boost averaging $125 a year for the company’s 2.1 million policyholders."
If I back that math out, it says the average policy is $1812 per year.

Forbes says the US average is $2150 per year. So California is still below average - if I did that math correctly?

Average Cost Of Car Insurance 2024

Car insurance is required to drive legally in nearly all states, so it’s helpful to know what you can expect to pay for coverage. Forbes Advisor found the average cost of car insurance is $2,150 for full coverage and $467 for state minimum coverage. We analyzed rates from the best car insurance c

www.forbes.com

 

[The Critic]

So from the article: "Geico, the state’s second-largest auto insurer, after State Farm, got a 6.9% rate increase in December, which will mean a premium boost averaging $125 a year for the company’s 2.1 million policyholders."
If I back that math out, it says the average policy is $1812 per year.

Forbes says the US average is $2150 per year. So California is still below average - if I did that match correctly?

Average Cost Of Car Insurance 2024

Car insurance is required to drive legally in nearly all states, so it’s helpful to know what you can expect to pay for coverage. Forbes Advisor found the average cost of car insurance is $2,150 for full coverage and $467 for state minimum coverage. We analyzed rates from the best car insurance c

www.forbes.com

Without knowing the definition of "average," it is difficult to draw any conclusions from those two examples. However, CA property and auto rates have historically been lower than many (but not all) states....so it would not surprise me if correct.

Also, keep in mind that the 6.9% is an average rate increase - you will have policies receiving above and below that number.

 

[2strokeNorthstar]

Insurance is another thing the CA government has managed to ruin by trying to fix it. Insurance has doubled or more in the past couple years for many. A lot of people struggle to even get insurance at all. Hopefully it all works out soon.

 

[RhondaHonda]

Your credit score certainly isn’t helping, but the main driver is probably where in California you live.

The Bay Area had some of the highest body labor rates in the country when I worked in insurance and I can’t imagine they’ve gone down. Very expensive repair costs get mixed into the underwriting bowl and ultimately passed along to the consumer.

 

[ripcord]

If you think insurance is expensive now, just wait until half the cars on the road are expensive, government mandated "limited-repairable" EVs where most every fender bender results in at least one or more total losses.

 

[dogememe]

Your credit score certainly isn’t helping, but the main driver is probably where in California you live.

The Bay Area had some of the highest body labor rates in the country when I worked in insurance and I can’t imagine they’ve gone down. Very expensive repair costs get mixed into the underwriting bowl and ultimately passed along to the consumer.

I just read that in California they can't use gender or credit score to influence your rate, though.

 

[RhondaHonda]

I just read that in California they can't use gender or credit score to influence your rate, though.

That could be true, so they’ll probably lump the entire state together and bump rates over time. Lots of uninsured and unlicensed drivers in CA too.

 

[SC Maintenance]

I just read that in California they can't use gender or credit score to influence your rate, though.

So everyone just pays more. Genius.

 

[Dave Hess]

Nothing I can do but just pay the bill.

I don’t like it but I need insurance.