“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.
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 jlansner@scng.com
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