April 26, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

California Drivers Face Continued Premium Increases in 2024 as Premiums Rise Nationwide

Car Insurance Rates Surge by 15% in First Half of the Year

California drivers face significant increases in car insurance premiums, as rates have surged 15% in the first half of 2024 alone. This rise is part of a broader trend across the state and the nation, with California expected to see a total increase of 22% by the end of the year, according to data from Insurify.

The steep rise in premiums follows a 24% increase in 2023, driven by insurers’ alleged underwriting losses of $33.1 billion in 2022. While losses decreased to $17 billion in 2023, the financial strain was still enough to trigger significant rate hikes in 2024.

The combination of inflation, rising vehicle repair costs, and severe weather-related claims has placed unprecedented pressure on insurers, forcing them to raise premiums. In states like California, where insurance rates were frozen during the COVID-19 pandemic, insurers are now scrambling to catch up, with some requesting double-digit rate increases and others exiting the state entirely.

“During COVID-19 shutdowns, states like California put a freeze on rate increases,” said Mallory Mooney, a licensed insurance agent and director of sales and service at Insurify. “That’s why so many people saw drastic rate hikes in 2023 after those restrictions were lifted. Insurers are still playing catch-up, and it’s too little too late for a lot of them.”

California’s insurance regulations, which emphasize consumer protections, require insurers to seek approval from the Department of Insurance (DOI) before implementing rate hikes. California drivers have experienced a 45% year-over-year increase in full-coverage rates despite these protections.

Adding to the financial burden, California is set to raise its minimum car insurance requirements on January 1, 2025, under Senate Bill 1107. The new law, signed by Governor Gavin Newsom, will double and, in some cases, triple the liability limits for auto insurance policies. While the higher limits will offer greater protection for drivers, they are also expected to increase premiums further.

Several insurers have scaled back their operations in the state. GEICO has closed all its California offices, State Farm has stopped quoting via phone, and Progressive has halted advertising in the state. With more insurers potentially leaving the market, the DOI may approve additional rate increases to retain companies.

With California’s average annual full-coverage premium exceeding $2,400, drivers are facing the highest insurance costs in recent memory, and the trend shows no signs of slowing down.

in News
Related Posts

West Hollywood Braces for Controversial Rally, Reaffirms Commitment to Equality

April 25, 2025

April 25, 2025

City of West Hollywood Condemns Harmful Rhetoric Ahead of Planned Assembly City officials and public safety leaders in West Hollywood are preparing...

(Video) The Willows: 30 Years Going Strong

April 25, 2025

April 25, 2025

Founded in 1994, The Willows Community School, located in Culver City, California, is a Developmental Kindergarten through 8th grade non-profit, co-educational...

ASTEME Camps Explore Science, Technology, Math and Engineering

April 25, 2025

April 25, 2025

Many teachers and parents hear this question daily when it comes to schooling: “When am I ever going to use...

Skirball Center’s Puppet Festival Promises an Afternoon of Imagination and Play

April 24, 2025

April 24, 2025

SoCal’s Top Puppeteers Will Perform Alongside Live Music, DIY Puppet-Making The Skirball Cultural Center is set to transform into a...

Q&A: No Age Limit on Home Care Management & Home Safety, Tips from a Care Manager

April 24, 2025

April 24, 2025

In-home safety issues that go unnoticed — cracked sidewalks, broken railings or uneven flooring for example — are often the root...

Culver City Police Hosts DEA Drug Take Back Day on April 26

April 24, 2025

April 24, 2025

Dispose of Expired Prescriptions Safely and Anonymously The Culver City Police Department will participate in National Prescription Drug Take Back...

Former Cedars-Sinai OB-GYN Accused of Sexually Abusing Patients for Four Decades

April 24, 2025

April 24, 2025

Ten Women Say Their Reports Were Ignored as Brock Continued to Practice for Decades. A group of 10 women has...

LAX/Metro Station is One Step Closer to Transforming the Airport Commute

April 24, 2025

April 24, 2025

New Multi-Modal Metro Station Connects Angelenos to the Airport Metro Board Chair and Los Angeles County Supervisor Janice Hahn announced...

FBI Unravels Alleged Plot to Sell Stolen Andy Warhol Print in Beverly Hills

April 24, 2025

April 24, 2025

Mid-City Pawn Shop Owner Charged in High-Stakes Art Scheme The owner of a pawn shop in Los Angeles’ Mid-City neighborhood...

The Brian Jonestown Massacre Drops New Double A-Side Ahead of U.S. Tour

April 24, 2025

April 24, 2025

Legendary Psych-Rockers Set April 25 Release and Fall North American Tour The Brian Jonestown Massacre is set to release a...

(Video) Matú Kai Brentwood: The full experience

April 23, 2025

April 23, 2025

Sister restaurant to Matú in Beverly Hills, located at 11777 San Vicente Blvd. Sister restaurant to Matú in Beverly Hills,...

Uncle Stevey’s Bagels Wins Westside Hearts with Next-Level Bagels, Premium Sandwiches, and Local Coffee

April 23, 2025

April 23, 2025

Family-Run Shop Serves Delicious and Thoughtfully Curated Bagels With Love By Dolores Quintana A little more than a year since...

Santa Monica’s Socalo Toasts Pali Wine Co. with a Five-Course Culinary Celebration

April 23, 2025

April 23, 2025

Enjoy Celebrated Central Coast Wines, Including a 100-Point Red Blend Socalo, the acclaimed Mexican restaurant from celebrity chefs Mary Sue...

Go Go Bird Teams Up with Chef Chris Oh for Korean-Inspired Fried Chicken Sandwich

April 23, 2025

April 23, 2025

Crispy, Saucy, Spicy: Chris Oh’s Fried Chicken Sandwich Lands in Culver City Go Go Bird, located in Culver City’s Citizen...

Fogo de Chão Hosts Wine Lover’s Dream Night with Chilean Winery VIK

April 23, 2025

April 23, 2025

Diners Will Enjoy a Chef-Curated South American Menu, Highly Rated Wines Wine lovers and culinary connoisseurs are invited to gather...