Auto insurance premiums in California are surging at an alarming rate, far outpacing even the national average. While homeowners have been grappling with rising insurance costs and policy cancellations, motorists are facing a similar crisis.
Ananda Neil stands in front of his 2022 Hyundai Santa Fe along Webster Street on Tuesday, Dec. 17, 2024, in Oakland, Calif. (Aric Crabb/Bay Area News Group)Over the past year, Oakland grocery store manager Ananda Neil has received updates on his auto insurance policy with mounting dread. When his six-month, per-mile policy for his 2022 Hyundai Santa Fe renewed in October 2023, it edged up from $77.19 to $83.39 a month and 15.5 to 16.7 cents a mile. But in April, it leaped to $167.
75 a month and 37 cents a mile.“The few insurance companies willing to write a policy were just as much if not more, so I kept my policy with Lemonade,” said Neil, who, despite driving less to reduce cost, said his monthly bill “more than doubled in the last seven months” from about $250 to $550, topping his monthly $453.52 lease payment for the vehicle. Ananda Neil sits in the driver seat of his 2022 Hyundai Santa Fe along Webster Street on Tuesday, Dec. 17, 2024, in Oakland, Calif. (Aric Crabb/Bay Area News Group) While there’s been much attention to rapidly rising insurance costs and policy non-renewals for California homeowners, the state also has seen increasing rates for auto coverage. Auto insurance rates across the U.S. and in California began rising last year, and though they leveled off nationally this summer, they’ve continued to climb in California, according to the latest Insurify analysis. In January 2021, the U.S. and California average annual auto insurance premium was about $1,500. But by November this year, the national average for a full-coverage policy reached $2,315 while California’s jumped to $2,536, according to the latest Bankrate analysis of average rates provided by insurance data firm Quadrant Information Services. California requires motorists to at least carry liability insurance for damage they might cause to others, and for that, the state’s average cost of $670 is slightly below the national average of $678. But that, too, is about to change next yea
AUTO INSURANCE CALIFORNIA RISING COSTS INSURANCE PREMIUMS MOTORISTS
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