The Zebra, an online platform for comparing insurance policies, has reported that car insurance rates in California saw an average increase of 7% in 2023. The company released these findings in a report updated on January 24.
According to the same report, the 7% rate hike in California was higher than that of several other states, including Massachusetts (5%), Vermont (2%), Wyoming (3%), and Indiana (0%). On a national scale, the report revealed that the average annual cost of a car insurance premium was $1,851, marking a 5% increase from the previous year. The rising costs for vehicle parts and repairs coupled with an increased volume of litigated claims post-accidents were identified as contributing factors to the escalating car insurance costs.
A separate report from Bankrate indicated that in California the average cost for full coverage car insurance is approximately 6% higher than the national average. This discrepancy is attributed to California's overall high cost of living and its "low-ranking infrastructure", which could potentially contribute to elevated car insurance costs. The report also highlighted that California operates under an at-fault or tort system.
Personal injury attorney Jared Staver explains that at-fault states typically witness higher rates of lawsuits following car accidents. In such states, it is incumbent upon the driver responsible for the accident to cover medical and property damages through their insurance.
As per information available on its website, The Zebra was established in 2012 with an aim to simplify the process of selecting insurance policies for consumers. The Zebra's algorithm uses customer data to compare over 100 insurance providers and recommends policies best suited to individual needs. The company is currently led by CEO Keith Melnick.