California auto insurance crisis?

[Efthreeoh]

Originally Posted by SoCal_NSX

it's just not enough profit

A spokesperson for the Insurance Commisioner says "while insurance companies are focused on increasing rates, the department of insurance is focused on protecting drivers and helping them get the most value from the premiums they pay."

His office points out that the commissioner saved Californians $2.4 billion in reduced premiums during the height of the covid stay at home order- when the industry still raked in a collective of $42 billion in excess premiums.

Insurers cannot refuse to cover Californians as we are what's called a "take all market," but agents say they are having to go with smaller, lesser known carriers if clients need insurance quickly


rental car prices and auto body prices sky rocketed during the pandemic taking advantage of the "supply chain" excuses and the insurance companies had to eat it ...they still make profits, just not as much as they used to and they don't like the fact that California is a consumer friendly state when it comes to insurance premiums and rate increases

Or... it's too much bribe money.

Ah, a bureaucrat/politician justifying his job by telling citizens how much money he saved them. He basically has a job for life, meanwhile people who actually run businesses are making real financial decisions to leave the marketplace and leave profits behind.

Yeah, that makes sense...

And the price of gasoline in Cali ALWAYS lowers the National average.

[M5Rick]

Anything car insurance is on-line over here and insurance details are all on your phone lol

[Theruleslawyer]

If they can't charge for risk, they stop coverage. Makes sense. Its like a lot of flood insurance where the only way to get it is through the government. Sounds like California needs to set up a state-run insurance agency. Given the politics there I can't wait to see how they base rates on social policies.

[Marcoose]

Originally Posted by Efthreeoh

Business walking away from profits... right.

Oh, look who has an opinion on everything California. The Maryland man types again.

[SoCal_NSX]

Originally Posted by Marcoose

Oh, look who has an opinion on everything California. The Maryland man types again.

[Theruleslawyer]

Originally Posted by Efthreeoh

You must be from Maryland too...

Oregon originally. You all are crazy down in California and then try and export it to your neighbors.

[chad86tsi]

The quickest best way to get rid of something is to regulate it to death.

If the state were to develop a non-profit version, wouldn't the rates still be subject to risk
based rate review: AKA rising rates due to rising costs?

[alanzyy]

I hope our auto insurance would not turn to sth like florida's homeowner situation

[SoCal_NSX]

Originally Posted by chad86tsi

The quickest best way to get rid of something is to regulate it to death.

If the state were to develop a non-profit version, wouldn't the rates still be subject to risk
based rate review: AKA rising rates due to rising costs?

all states regulate insurance rates....which is a good thing, cuz we'd all be paying Florida rates or worse if they could get away with price gouging without any sort of regulations

https://www.thebalancemoney.com/how-...ulated-4091196

[chad86tsi]

Originally Posted by SoCal_NSX

all states regulate insurance rates....which is a good thing, cuz we'd all be paying Florida rates or worse if they could get away with price gouging without any sort of regulations

https://www.thebalancemoney.com/how-...ulated-4091196

From your article:

The extent of regulation varies widely from state to state.

California likes to be extra special in a lot of things, seems like a "natural consequence" is taking place.

[FC4]

That's it, I'm convinced. As soon as I can afford to leave CA, I'm outta here.

[SoCal_NSX]

Originally Posted by chad86tsi

From your article:

The extent of regulation varies widely from state to state.

California likes to be extra special in a lot of things, seems like a "natural consequence" is taking place.

If companies want to walk away from the most populous state and one of the richest in the country that is their prerogative, might not be the best idea, but it is their right....IMO, there is a much better way to handle it than flat out abandoning an entire state to make a statement...Some companies only insure safe drivers and only insure homes that aren't in a fire hazrd zone to keep their risks low....btw, California is just one of many states that insurance companies have left in recent years.

It's a high stakes game of chicken

Here is an interesting article about it.

https://www.reckon.news/news/2023/03...-coverage.html

[Marcoose]

Originally Posted by FC4

That's it, I'm convinced. As soon as I can afford to leave CA, I'm outta here.

Do you promise ?

[SoCal_NSX]

Originally Posted by FC4

That's it, I'm convinced. As soon as I can afford to leave CA, I'm outta here.

lol..it's usually the other way around....

"as soon as I could afford to live in California, I'm outta here"



if you can afford to live in California, pretty much every other state is a bargain...dont't let the door hit you

[shuaiw]

yes i am in california too it is true i am currently waiting for 10 days and dont know anything yet it does sound scary

[FC4]

Originally Posted by Marcoose

Do you promise ?

Sure. I could probably swap one house for an entire township or parrish or whatever the fuck they're called in flyover states. I'll make a lot of new friends.

[Theruleslawyer]

Originally Posted by FC4

Sure. I could probably swap one house for an entire township or parrish or whatever the fuck they're called in flyover states. I'll make a lot of new friends.

You could get a great driveway.

[imperfectluck]

Originally Posted by SoCal_NSX

It's a high stakes game of chicken

Here is an interesting article about it.

https://www.reckon.news/news/2023/03...-coverage.html

It baffles me when they do these things like this. Grateful for the regulation as you're right if it didn't exist, the insurance companies would greed deep into many wallets.

In same said article, this was in interesting read as well.

https://www.iii.org/press-release/tr...-demise-062322

[Efthreeoh]

From the Tax Foundation (2020 data analysis):

"Our State Business Tax Climate Index uses over 100 variables to evaluate states on the competitiveness of their tax rates and structures. Four of the 10 worst-performing states on this year’s Index are also among the 10 states with the most outbound migration in this year’s National Movers Study (New Jersey, New York, Connecticut, and California). Seven of the top 10 ranked inbound migration states also rank in the top half of states on the Index, which measures tax structure. And the three which do not (Alabama, Arkansas, and South Carolina), while having significant room for improvement in the structure of their tax codes, generally feature low tax burdens. Conversely, all but one of the top outbound states rank in the bottom third of the Index, the only exception being North Dakota (17th), where outbound migration has been driven by a decline in energy markets."

Off in the distance, the vigorous keystroke hacking makes the sound of laughter... "Does anyone remember laughter?"

[KevinC]

This asshole is the problem.

[alanzyy]

There is a news article about this published yesteday -

https://www.sfchronicle.com/californ...e-18145165.php

[RM7]

Originally Posted by FC4

That's it, I'm convinced. As soon as I can afford to leave CA, I'm outta here.

https://www.yahoo.com/finance/news/h...092006534.html

Hint, it's not California!