Major California Auto Insurers Resist Issuing New Policies

Major auto insurers are pulling back in the California marketplace because they are saying our drivers are just too expensive to insure.

Californians are driving about as much as they were before the pandemic, but apparently not as well.

Auto accidents are up and some insurance companies say they are paying out more than they are taking in. But, the insurance commissioner says the facts don’t support their claims.

From 2020 to 2021, auto insurance losses spiked 25% while premiums increased by only 4.5%, according to the American Property Casualty Insurance Association. The rate and severity of auto accidents are up as well as the costs to cover them.

"The cost to rent a car is up 33% and the cost for a new vehicle is up 11%," said Denni Ritter, American Property Casualty Insurance Association.