If your car insurance has gone up this summer you're not alone.
My own premium jumped nearly $100 last month. I found out why rates are skyrocketing and how it's impacting Central Coast residents.
“Everything goes up,” said Kelly Skinner, a Nipomo resident.
It seems like the cost of everything is going up these days.
“Even going to the grocery store,” said Skinner. Eggs [are] going up.”
“Everything,” said Stacy Hand, a Central Coast resident. “Groceries. Everything.”
But here in California, one significant increase has left many people stunned — car insurance.
“The amount that it was going up was shocking,” said Vicky Phillips, an Arroyo Grande resident.
Last month, I received my bill and noticed an almost $100 increase. Curious, I contacted my insurance agent to find out why.
My agent explained, “that insurance rates in California have gone up considerably.”
Others are also feeling the pinch.
“I was paying $900 and that a year,” said Skinner. “Yep and then it went up to $1300.”
So, why are premiums on the rise? Researchers at the Insurance marketplace website Insurify looked into the higher rates and pointed to several factors, including auto thefts—which California led the nation in last year.
But there’s another layer. California's strict insurance regulations, meant to protect consumers, might actually be adding to the increases, according to Insurify.
For many Central Coast residents, especially those on fixed incomes, this is a major concern.
“Thing is you got to sacrifice,” said Rick Phillips, Arroyo Grande resident.
But this recent increase may not be the last. According to a new study by Insurify, they project a 22% rise in car insurance costs after a 15% spike in just the first half of 2024, leading to an increase of more than 50% by the end of the year.
“Everyone is complaining about it,” said Skinner. “But there's nothing we can do about it.”
Researchers warn that if more insurance companies exit the state, the California Department of Insurance might be forced to approve further rate hikes just to keep insurers in the Golden State.
As of this month, California has over 27 million licensed drivers.
But, the Insurance Research Council estimates that 17% of them don't have car insurance, which is 25% higher than the national average.
