Following home insurance, auto insurance premiums are also expected to skyrocket. This year, auto insurance premiums are expected to skyrocket by 54 percent compared to last year. It is predicted that skyrocketing auto insurance premiums will continue to rise this year, skyrocketing by a whopping 54 percent compared to last year. This is the result of the policy pricing report of insurance company Insu pay. The company analyzed the premiums of beneficiaries with deductibles of $1,000 and no accidents for two years and came up with this forecast.
California is expected to see the third-largest premium increase in the country this year. The region with the largest expected increase in auto insurance premiums is Minnesota, with a 61 percent increase. Missouri is next with a 55 percent increase.
Following California, Maryland recorded the fourth-largest premium increase in the country with a 41 percent increase. On the other hand, New York and New Hampshire had the lowest auto insurance premium increases in the country at 4 percent, followed by Maine at 6 percent and Michigan at 8 percent. California’s auto insurance premiums were $1,741 last year, lower than the national average of $2,024. However, if the forecast goes as planned, car insurance premiums in California this year will be $2,681, higher than the national average of $2,460.
The states predicted to have the highest premiums are Maryland at $3,748, South Carolina at $3,687, Nevada at $3,531, New York at $3,484, Florida at $3,444, and Texas at $2,915. The companies claim that the reasons for the premium increases are due to careless driving habits, damage caused by natural disasters, and many claims related to repair costs for newer vehicles. They also added that California had been prohibited from raising premiums during the coronavirus pandemic, and that is why California auto insurance premiums have been increasing sharply since last year.
According to the insurance company in town, in the case of Southern California, theft, car-related incidents and accidents are constantly occurring, and in the case of new cars, it is difficult to procure repair parts when they are damaged, so the insurance premium increase is inevitable.
“Insurance companies used to help beneficiaries who needed rental cars during the repair period at low prices, but now they have no choice but to raise the prices.” They added that the cheapest car insurance starts at $200 per month, which is not enough for insurance companies to resolve the beneficiaries’ accident claims. “Insurance premiums are cheaper the more driving experience you have, but it is not the case that insurance premiums are getting cheaper at the moment.” “There is no prospect of the skyrocketing car insurance premiums falling.”
For young people who have just graduated from college and are looking for jobs in the LA area, the skyrocketing apartment rents, car prices, and skyrocketing car insurance premiums are making it financially burdensome to rent an apartment and drive a car in LA.