NHC Insurance Services, a San Pedro-based independent insurance agency, has revealed that a driving violation in California could lead to an insurance premium increase of over 90% this year. The agency warns that while drivers across the country can anticipate harsher penalties for violations such as DUIs, it is the motorists in California who will face the most significant financial consequences nationwide.
According to a press release from NHC, the national average for an insurance premium increase due to a driving violation is projected to be 84% in 2024. These escalated penalties will coincide with an estimated 12.6% surge in car insurance rates for drivers throughout the country. Car insurance rates increased by an average of 11.2% last year. "Despite a cooling inflation rate in the second half of 2023, car insurance prices continue to escalate at a record pace, presenting an additional financial challenge for drivers in 2024," said NHC.
The OC Register reported that drivers across California have expressed their grievances about soaring insurance costs and delays in receiving quotes on various social media platforms. In response, insurance providers have argued that their costs are increasing and that the California Department of Insurance has been sluggish in approving their rate hikes. As of December 11th, 2023, the state's insurance department had sanctioned a total of 111 rate increases that year.
CBS News reported that within California, Beverly Hills drivers are paying the highest average amount for their car insurance at $3,048 per annum. Meanwhile, drivers in Tarzana, Van Nuys, and West Hollywood are shelling out an average of between $2,900 and $3,000.
According to its website, NHC Insurance Services collaborates with numerous California insurance providers to offer clients tailored insurance packages that suit their needs and budgets. The company provides insurance packages for both business and personal requirements and has been operating for close to 35 years.