Harvey Rosenfield, author of Proposition 103 and founder of Consumer Watchdog, said that rate increases are approved when insurers “didn't pay their customers unexpected surcharges during the pandemic lockdown, when people dramatically reduced their driving and accident rates and insurance claims declined. Check with your provider about discounts. Many car insurance companies offer a variety of discounts and ways to save. Discounts can include discounts for multiple vehicles, discounts for seniors, and discounts for driving safely.
For example, 21st Century Insurance Company offers discounts for safe drivers that increase the longer you go without an accident. California insurance commissioner Ricardo Lara approved increases in auto insurance rates for the state's six major companies in recent months. Because damage like this is covered by comprehensive car insurance, insurers often foot the bill when more extreme weather conditions occur. California insurance commissioner Ricardo Lara approved sharp rate increases in recent months, after insurers complained about losses and declining profits.
You've had very few accidents, maybe none, and yet your monthly car insurance payments have increased. This is because California insurance commissioner Ricardo Lara approved some major rate hikes in the past six months, ending a long pause due to COVID after insurance companies complained that they were losing money and cutting back on the country's largest vehicle market. While it's difficult to avoid increases in auto insurance rates across the state, there are some steps that all drivers can take to help lower their total cost. The California insurance commissioner responded to my report by telling insurers that they needed to get to work and fly right away.
Some California drivers are in for an unpleasant surprise when they open their car insurance bills this year. Since insurers lose money due to the rising costs of auto insurance payments, an increase in rates allows the insurance company to continue operating, where they don't pay more than they receive. At the start of the pandemic, I was among the first reporters to realize that auto insurance rates were still high even though most people had stopped driving. Most of the time, insurers automatically apply auto insurance discounts to a qualifying driver's premiums.
