According to a study by Insurify, an online insurance broker, auto insurance rates are set to significantly increase nationwide, with California drivers facing the steepest hikes.
The study reveals that the average auto insurance rate across the U.S. has already surged by 15% in the first half of the year and is expected to rise by 22% by year’s end. However, Californians may see their rates jump by 54%, more than double the national average.
The Department defended its practices in a statement, saying that rate changes comply with California laws and are justified under Proposition 103, which regulates insurance rates.
Insurers attribute these hikes to various factors, including the rising costs of vehicles and repairs, despite the Consumer Price Index indicating a decrease in both new and used car prices over the past year.
Consumer Watchdog advises Californians to shop around for better insurance deals, report lower mileage if driving less, and consider driving older, less expensive vehicles to mitigate the impact of these impending rate increases.