Do you feel like your insurance rates are skyrocketing? If so, you’re not alone. More people than ever report issues with their insurance rate going up, and it looks like the Golden State is home to increases across the board.
The cost of a typical California car insurance policy has increased by more than 6% in the last year. That’s the second biggest increase across the entire nation, and a five-year rise of a California insurance policy cost has totaled 44%. One of the primary reasons that a California car insurance policy has gotten more expensive is that now insurance companies are trying to play catch up for a hole they created by not charging enough in the past.
Insurers allegedly lost more than $36 billion in the last two years on all casualty and property policies. Some of the other leading reasons behind higher costs for a California car insurance policy have to do with the behavior and demographics of drivers themselves. These include:
- More commuting and more job opportunities mean more chances for accidents.
- Cheaper gasoline makes driving more affordable and puts more people on the road, so do those green vehicles that more people are interested in than ever.
- Fancier cars with advanced technology offerings are more expensive to fix when an accident occurs.
- More people are distracted than ever, causing catastrophic accidents.
- It is very expensive to pick up the tab for medical bills, especially in light of the current costs of health care around the state of California.
Thankfully, if you’ve already been involved in an accident, you may have grounds to pursue a personal injury claim against the responsible driver, but you need to consult with an attorney sooner rather than later to do so. Being in an accident can spike your insurance rate, so make sure you take care to protect your interests.