Auto insurance premiums in California have increased by 54% this year, according to the Orange County Register.

„Swift Swings“ takes a quick peek at one economic trend that is causing concern for California drivers – a significant increase in auto insurance premiums. According to a recent report from insurance tracker Insurify, the typical auto insurance policy in California is set to be 54% pricier in 2024 compared to 2023. This surge in policy prices is reflective of the challenges that insurers are facing nationwide, including rising claims due to poor driving habits, increased climate-driven storm damages, and costlier repairs for high-tech vehicles.

Insurify’s study analyzed two-year median costs for drivers between the ages of 20 and 70 with clean driving records on policies with comprehensive and collision coverage and deductibles of $1,000. The forecasted increase in California’s auto insurance premiums is the third-largest jump among states, with only Minnesota and Missouri experiencing higher increases at 61% and 55%, respectively.

Nationally, premiums are expected to soar by 22% when comparing the two years ending in 2023 with the same period ending in 2024. California drivers will see their annual auto insurance premium rise to $2,681, making it the 15th-most-expensive coverage in the country. This is 9% above the national average of $2,460.

In contrast, Washington state drivers will experience a 10% decrease in insurance costs, while New Hampshire, New York, Maine, and Michigan will see the smallest increases at 4%, 4%, 6%, and 8%, respectively. On the other hand, Maryland, South Carolina, Nevada, New York, and Florida will have the highest premiums in 2024.

Insurify’s Mallory Mooney explains that the drastic rate hikes in 2023 were a result of states like California lifting restrictions on rate increases during COVID-19 shutdowns. Insurers are still playing catch-up, leading some to pull out of certain markets entirely. This has left many drivers feeling the financial burden of increased insurance costs.

Overall, the rise in auto insurance premiums in California is part of a larger trend affecting drivers nationwide. As insurers grapple with various cost pressures, it is essential for consumers to stay informed about changes in policy prices and explore options to mitigate the impact on their wallets.