A report released by Insurify on August 11 found that car insurance costs could increase by more than 50% in California in 2024, despite predictions from experts that insurance hikes would slow this year.
According to Insurify, the average cost of full coverage car insurance nationwide increased by 14% during the first half of this year, rising to $2,329. As of June 2024, California drivers were paying an average of $2,417 for full coverage car insurance, and Insurify predicted that figure will increase to $2,681 by the end of the year. Car insurance costs are increasing faster in California than in many other states, having risen 45% from June last year to June this year.
According to the California Budget and Policy Center, low-income Californians are the most affected when the costs of necessary goods and services go up. Nonwhite Californians are also more likely to struggle to afford necessities than white Californians.
The Insurance Information Institute (III) reported that plaintiff’s attorneys are engaging in tactics that result in a larger number of lawsuits and higher litigation costs and payouts. As a result of these tactics, car insurance costs are rising, exacerbating economic challenges for consumers. "There are real costs behind what we all know and see plaguing our roads with promises of settlement dollars," III CEO Sean Kevelighan said in a statement. "As billboard attorneys are racking up fees, and consumers are found to be getting less and less. The price of insurance is the effect, not the cause of risk, and there must be more work done to curb legal system abuse, as auto insurers – both personal and commercial – are seeing significant increases in claims costs when attorneys enter into the picture," Kevelighan added.
Insurify is a virtual insurance agency service licensed in all fifty states, according to its website. The service allows drivers to compare insurance policies and receive personalized quotes.