The Consumer Price Index (CPI-U) for the Los Angeles area recorded a 0.7% increase in March 2024 and a 4.0% rise over the past year, predominantly due to escalating shelter costs. Nationwide increases were 0.4% in March 2024 and 3.5% over the last year.
The BLS also reported that auto insurance rates were a notable increase in national inflationary pressures, rising 22.2% since March of last year.
Mark Fitzpatrick from Moneygeek reports that California is among the priciest states for car insurance, with average premiums exceeding the national average of $1,343. Specific data shows that California drivers with a speeding ticket pay about $1,944 annually, those involved in accidents pay approximately $2,205 each year, and drivers with a DUI face the highest rates at an average of $3,375 annually.
One California resident took to X, formerly Twitter, to discuss increased car insurance costs. “How sad is it that our long time insurance company @Allstate raised our car insurance 30% more than $100 more a month,” the post said. “We have not had accidents or any claims, this is ridiculous!!!”
Inflation hits especially hard in California due to the state’s already-high cost of living, the LA Times reported. Even small increases in inflation have a large impact on California residents, who already face higher than average prices for necessities including energy and housing. Multiple studies have ranked California as the state with the first or second highest cost of living in the nation, behind only Hawaii.
An increasing number of lawsuits is contributing to high costs for California consumers, the Northern California Record reported.
The U.S. Chamber of Commerce Institute for Legal Reform (ILR) reported that excessive lawsuits are contributing to rising car insurance costs. This volume of litigation, particularly class action lawsuits, forces businesses to raise their prices, passing the cost on to consumers. In California, every household effectively pays an extra “tax” of $4,599 each year due to excessive tort lawsuits.