“Swift swings” takes a quick peek at one economic trend.
The number: When this year is complete, the typical auto insurance policy in California will be 54% pricier than 2023.
The source: My trusty spreadsheet analyzed an auto policy pricing report from insurance tracker Insurify. Its study looked at two-year median costs for drivers between the ages of 20 and 70 with clean driving records on policies with comprehensive and collision coverage with deductibles of $1,000.
Quick analysis
Surging policy prices reflect how insurers are fighting numerous cost pressures nationwide – from rising claims due to poor driving habits to increased climate-driven storm damages on top of costlier repairs to new vehicles filled with hard-to-fix, high-tech gadgetry.
Please note that rising insurance rates are not a Golden State quirk. Still, if Insurify’s forecast is correct, California drivers will suffer the third-largest jump in policy prices among the states. Nationally, premiums will soar by 22% when comparing the two years ended 2023 with the same period ending in 2024.
Only drivers in Minnesota (up 61%) and Missouri (up 55%) will be harder hit than Californians. Next comes Maryland at 41% and Massachusetts at 40%.
Washington state drivers do the best, with 10% cost drops. The smallest increases will be seen in New Hampshire and New York at 4%, Maine at 6%, and Michigan at 8%.
And what about California’s economic rivals? Texas was No. 26 with a 23% gain, and Florida was No. 35 at 18%.
Details
In the two years ending in 2023, the typical Californian’s annual auto insurance premium ranked a middle-of-the-pack No. 26 among the states at $1,741 – 14% below the nation’s $2,024.
Top premiums were New York at $3,350, then Nevada at $2,943, Florida at $2,919, Delaware at $2,789, and Louisiana at $2,783. Texas was No. 11 at $2,370.
Lows 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 this year will move up the rankings to 15th-most-expensive coverage at $2,681 a year. That’s 9% above the nation’s $2,460.
Tops will be Maryland at $3,748, then South Carolina at $3,687, Nevada at $3,531, New York at $3,484, and Florida at $3,444. Texas would be No. 9 at $2,915.
Lows? 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 bite
“During COVID-19 shutdowns, states like California put a freeze on rate increases. That’s why so many people saw drastic rate hikes in 2023 after those restrictions were lifted,” said Insurify’s Mallory Mooney. “Insurers are still playing catch-up, and it’s too little too late for a lot of them. Insurers have had to pull out of some markets completely.”
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
Originally Published: