California has the 15th-lowest auto insurance rates in the U.S., but drivers have seen significant premium hikes in 2023. After a more than two-year freeze on rate hikes due to the COVID-19 pandemic, the California Department of Insurance (CDI) approved increases for six of the state’s largest auto insurers over the past year.
Proposition 103, the primary legislation regulating California’s insurance industry, requires approval from the CDI for rate increases. As a result, the average monthly cost of car insurance in California is $146, significantly less than the national average of $142, according to Insurify data.
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmx?DFC6CD D2J r2=:7@C?:2 AC6>:F>D 92G6?’E <6AE FA H:E9 C:D:?8 4@DED] !@DE\A2?56>:4 :?7=2E:@? 9:E 2 9:89 :? yF?6 a_aa[ 2E h]`T[ 3FE 5C@AA65 E@ b]fT :? $6AE6>36C a_ab[ 244@C5:?8 E@ E96 qFC62F @7 {23@C $E2E:DE:4D Wq{$X 4@?DF>6C AC:46 :?56I Wr!xX] %96 4@DE @7 >@E@C G69:4=6 >2:?E6?2?46 2?5 C6A2:C :D FA `_]aT J62C @G6C J62C 7C@> =2DE $6AE6>36C]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm“!C@A `_b <6AE C2E6D 2CE:7:4:2==J =@H 7@C 2 =@E @7 J62CD :? r2=:7@C?:2[” D2JD y2?6E #F:K[ 5:C64E@C @7 DEC2E68:4 4@>>F?:42E:@?D 2E E96 x?DFC2?46 x?7@C>2E:@? x?DE:EFE6 W%C:A=6\xX] “,x?DFC2?46 4@>A2?:6D. 92G6 E@ 4@==64E 256BF2E6 AC6>:F>D E@ A2J E96 4=2:>D]”k^DA2?mk^Am
k9am|2;@C 2FE@ :?DFC6CD C6BF6DE e]hT 9:<6D E@ 2G@:5 492==6?86Dk^9am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm&?56C !C@A `_b[ :7 2? :?DFC6C D66<D 2 AC6>:F> :?4C62D6 @7 fT @C >@C6[ 4@?DF>6C 25G@42E6D 42? 364@>6 “:?E6CG6?@CD” 2?5 492==6?86 E96 AC@A@D65 C2E6D]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmx?E6CG6?@CD 92G6 E96 C:89E E@ C64@G6C 4@DED[ 6IA6?D6D[ 2?5 2EE@C?6J’D 766D :?4FCC65 5FC:?8 E96 C2E6 7:=:?8 7C@> :?DFC6CD[ >2<:?8 E96 AC@46DD 4@DE=J 7@C 4@>A2?:6D] x?DFC2?46 4@>A2?:6D @7E6? C6BF6DE C2E6 :?4C62D6D @7 e]hT E@ 2G@:5 =6?8E9J AF3=:4 962C:?8D]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm$:I >2;@C r2=:7@C?:2 2FE@ :?DFC6CD C6BF6DE65 e]hT :?4C62D6D 36EH66? E96 6?5 @7 a_aa 2?5 a_ab E92E H:== :?4C62D6 2G6C286 2??F2= AC6>:F>D 3J FA E@ S`ef[ 244@C5:?8 E@ r@?DF>6C (2E495@8ik^DA2?mk^Am
kF=mk=:mkAmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmp==DE2E6k^DA2?mk^DEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm[ 67764E:G6 s646>36C a_aa[ S`ef 2G6C286 AC6>:F> :?4C62D6k^DA2?mk^Amk^=:mk=:mkAmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmvtxr~k^DA2?mk^DEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm[ 67764E:G6 y2?F2CJ a_ab[ S`ad 2G6C286 AC6>:F> :?4C62D6k^DA2?mk^Amk^=:mk=:mkAmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm|6C4FCJk^DA2?mk^DEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm[ 67764E:G6 |2C49 a_ab[ Sg_ A6C G69:4=6 2G6C286 AC6>:F> :?4C62D6k^DA2?mk^Amk^=:mk=:mkAmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmpFE@ r=F3 @7 $@FE96C? r2=:7@C?:2k^DA2?mk^DEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm[ 67764E:G6 pAC:= a_ab[ S`c_ 2G6C286 AC6>:F> :?4C62D6k^DA2?mk^Amk^=:mk=:mkAmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm$E2E6 u2C>k^DA2?mk^DEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm[ 67764E:G6 |2J a_ab[ Sf` 2G6C286 AC6>:F> :?4C62D6k^DA2?mk^Amk^=:mk=:mkAmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmu2C>6CDk^DA2?mk^DEC@?8mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm[ 67764E:G6 s646>36C a_ab[ Shg 2G6C286 AC6>:F> :?4C62D6k^DA2?mk^Amk^=:mk^F=m
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm$@>6 D>2==6C :?DFC2?46 4@>A2?:6D C646:G65 2AAC@G2=D 7@C 9:896C :?4C62D6D] %96 FD286\32D65 2FE@ :?DFC6C #@@E C646:G65 2 ea]cT :?4C62D6[ 2?5 x?4=:?6 }2E:@?2= x?DFC2?46 r@>A2?J 8@E 2 ag]fT :?4C62D6 @? ?@?\DE2?52C5 2FE@ A@=:4:6D]k^DA2?mk^Am
k9amx?7=2E:@? :D E96 >2:? 724E@C 369:?5 AC6>:F> DA:<6D[ D2JD %C:A=6\xk^9am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmr2=:7@C?:2’D 9@>6 :?DFC2?46 >2C<6E :D 2=D@ :? 4C:D:D[ 5C:G6? =2C86=J 3J DE2E6\DA64:7:4 724E@CD] t2CE9BF2<6D E9C62E6? 7@F?52E:@?D[ 7=@@5D CF:? 7=@@C:?8[ 2?5 H:=57:C6 52>286 =625D E@ 4@DE=J 4=2:>D :? 2 DE2E6 H96C6 E96 >65:2? 9@>6 G2=F6 :D `bcT 9:896C E92? E96 ?2E:@?2= 2G6C286[ 244@C5:?8 E@ &]$] r6?DFD 52E2]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm%96 >2:? C62D@? 369:?5 C:D:?8 42C :?DFC2?46 C2E6D :D >@C6 DEC2:89E7@CH2C5[ D2JD #F:K]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm“(:=57:C6D 5@ 27764E 42CD E92E 92G6k^DA2?m k2 9C67lQ9EEADi^^:?DFC:7J]4@>^42C\:?DFC2?46^<?@H=6586^H92E\:D\4@>AC696?D:G6\:?DFC2?46^QmkDEC@?8mkDA2? DEJ=6lQ4@=@CiC83W`f[ gd[ a_cXQm4@>AC696?D:G6 4@G6C286k^DA2?mk^DEC@?8mk^2mkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm] $@[ :7 J@FC 42C 8@E 3FC?E :? 2 H:=57:C6 2?5 J@F 92G6 4@>AC696?D:G6 ,]]]. E9@D6 4@DED 2C6 C67=64E65[” D96 D2JD] “qFE E92E’D ?@E C62==J H92E H6 =@@< 2E 2D >F49 @? E96 2FE@ D:56] (92E H6’C6 D66:?8 ?@H :? 2FE@ ,:?DFC2?46.[ 24C@DD E96 &]$][ 2C6 E96 67764ED @7 :?7=2E:@?]”k^DA2?mk^Am
k9amr~'xs\`h 5C:G:?8 923:ED :?7=F6?46 C2E6 9:<6D A@DE\=@4<5@H?k^9am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmp? :?4C62D6 :? D6G6C6 A@DE\=@4<5@H? 244:56?ED :D 2?@E96C 724E@C :?7=F6?4:?8 C2E6D[ D2JD #F:K]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm“(6 D2H C62==J 325 5C:G:?8 3692G:@C 56G6=@A 5FC:?8 r~'xs] %96C6 H6C6 76H6C A6@A=6 @? E96 C@25D[ 2?5 A6@A=6 DE2CE65 DA665:?8 2?5 5C:G:?8 C64<=6DD=J[ 2?5 E92E 92D 4@?E:?F65 A@DE\r~'xs H:E9 >@C6 5C:G6CD @? E96 C@25]”k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmr2=:7@C?:2 EC277:4 72E2=:E:6D DFC865 aaT 36EH66? a_`h 2?5 a_aa[ 244@C5:?8 E@ %96 #@25 x?7@C>2E:@? !C@8C2> W%#x!X] u2E2= 2?5 D6C:@FD 4C2D96D :? E96 DE2E6 C6DF=E65 :? S`ee 3:==:@? :? 64@?@>:4 2?5 BF2=:EJ\@7\=:76 4@DED =2DE J62C[ C6G62=D 2 a_ab C6A@CE 7C@> E96 EC2?DA@CE2E:@? ?@?AC@7:E]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm!C@A `_b C6DEC:4ED :?DFC6CD 7C@> 4@?D:56C:?8 46CE2:? C:D< 724E@CD H96? 56E6C>:?:?8 C2E6D] x?DFC6CD 42?’E 32D6 C2E6D AC:>2C:=J @? +x! 4@56 3FE 42? 4@?D:56C 2??F2= >:=6286[ J62CD @7 5C:G:?8 6IA6C:6?46[ 2?5 5C:G:?8 C64@C5[ :?4=F5:?8 2?J 244:56?ED @C G:@=2E:@?D]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQm“~?6 @7 E96 :DDF6D H6 D66 :D ?@E 36:?8 23=6 E@ FD6 E6=6>2E:4D 2D 2 C2E6\>2<:?8 724E@C[” D2JD #F:K] “%6=6>2E:4D 24EF2==J 8:G6D 4@?DF>6CD E96 @AA@CEF?:EJ E@ 92G6 E96:C C2E6D 32D65 >@C6 @? E96:C 5C:G:?8 923:ED C2E96C E92? 2 4=2DD @7 A6@A=6 E96:C 286 @C H:E9 E96:C 6IA6C:6?46] ,]]]. $@[ :E H@F=5 36 E@ 4@?DF>6CD’ 36?67:E E@ FD6 E6=6>2E:4D]”k^DA2?mk^Am
k9am(92EVD ?6IE 7@C 42C :?DFC2?46 :? r2=:7@C?:2k^9am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmx? 2? 2EE6>AE E@ DE23:=:K6 E96 DE2E6’D 7=2:=:?8 AC@A6CEJ :?DFC2?46 :?5FDECJ[ v@G6C?@C v2G:? }6HD@> 2?5 x?DFC2?46 r@>>:DD:@?6C #:42C5@ {2C2 2??@F?465 :?DFC6CD H@F=5 36 23=6 E@ 724E@C 4=:>2E6 492?86 :?E@ C:D< >@56=D 2D =@?8 2D E96J 28C66 E@ HC:E6 >@C6 A@=:4:6D 7@C 9@>6@H?6CD :? 9:896C\C:D< 2C62D]k^DA2?mk^Am
kAmkDA2? DEJ=6lQ4@=@CiC83W_[ _[ _XQmpFE@ :?DFC2?46 4@F=5 36 27764E65 3J D:>:=2C 4@>AC@>:D6D :? E96 7FEFC6 2D v@G] }6HD@> 2?5 E96 rsx ECJ E@ AC6G6?E :?DFC6CD 7C@> =62G:?8 E96 DE2E6]k^DA2?mk^Am
