California auto insurance premiums up 54% this year – Orange County Register

“Swift swings” quickly analyzes an economic trend.

The number: By the end of this year, the typical car insurance policy in California will be 54% more expensive than it was in 2023.

The source: My trusty spreadsheet analyzed an auto policy pricing report from insurance tracker Insurify. Their study looked at two-year median costs for drivers ages 20 to 70 with clean driving records on comprehensive and collision policies with $1,000 deductibles.

Quick analysis

Rising policy prices reflect how insurers are grappling with numerous cost pressures across the country, from rising claims due to poor driving habits to increased damage from weather-induced storms, plus more expensive repairs for new vehicles packed with hard-to-repair high-tech gadgets.

Keep in mind that rising insurance rates are not peculiar to the Golden State. Still, if Insurify’s forecast is correct, California drivers will see the third-largest increase in policy prices among states. Nationwide, premiums will soar 22% when comparing the two years ending in 2023 to the same period ending in 2024.

Only drivers in Minnesota (up 61%) and Missouri (up 55%) will be more affected than those in California. Maryland follows with 41% and Massachusetts with 40%.

Drivers in Washington state are the most likely to see cost reductions of 10%. Smaller increases will be seen in New Hampshire and New York (4%), Maine (6%) and Michigan (8%).

And what about California’s economic rivals? Texas ranked 26th with a 23% increase, and Florida ranked 35th with an 18% increase.

Details

In the two years ending in 2023, the typical Californian’s annual auto insurance premium ranked 26th among states at $1,741, 14% below the nation’s $2,024.

The highest premiums were recorded in New York ($3,350), Nevada ($2,943), Florida ($2,919), Delaware ($2,789) and Louisiana ($2,783). Texas ranked 11th at $2,370.

The lowest prices were found in New Hampshire at $1,013, then North Carolina at $1,122, Maine at $1,192, Ohio at $1,271 and Idaho at $1,298.

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If Insurify’s crystal ball is correct, California will move up the rankings this year to No. 15 among most expensive insurers at $2,681 a year, 9 percent more than the nation’s $2,460.

Maryland will come in first at $3,748, followed by South Carolina at $3,687, Nevada at $3,531, New York at $3,484 and Florida at $3,444. Texas will come in ninth at $2,915.

The lowest prices? New Hampshire at $1,053, then Maine at $1,263, Vermont at $1,499, North Dakota at $1,511 and Hawaii at $1,538.

Sound clip

“During the COVID-19 shutdowns, states like California froze rate increases. That’s why many people saw drastic rate increases in 2023 after those restrictions were lifted,” said Mallory Mooney of Insurify. “Insurers are still trying to catch up, and it’s too little, too late for many of them. Insurers have had to pull out of some markets altogether.”

Jonathan Lansner is a business columnist for the Southern California News Group. He can be reached at [email protected]