Farmers Insurance Resumes New Policies
Farmers Insurance has announced that it will resume accepting new business commercial multi-peril applications in California. This move comes after a temporary moratorium on new commercial auto insurance policies in the state. Farmers has been working with the California Department of Insurance to ensure that rates accurately reflect risk exposure. The insurer is set to begin accepting new applications as of August 1, 2024. This development is seen as a positive step towards stabilizing the commercial insurance market in California (Insurance Journal).
Top Auto Insurance Providers
Several insurance companies are noted for their competitive rates and customer satisfaction in California:
- Wawanesa: Offers the cheapest car insurance rates in California at an average of $80 per month or $959 per year, which is 48% cheaper than the state average.
- GEICO: Known for its low rates, GEICO’s average cost is $122 per month or $1,465 per year, making it 20% cheaper than the statewide average.
- USAA: Provides excellent rates and customer service, available exclusively to military members and their families. The average cost is $125 per month or $1,502 per year, which is 18% cheaper than the state average (Policygenius) (NerdWallet: Finance smarter).
Rising Premiums and Rate Increases
Auto insurance premiums in California have been rising significantly, with many insurers implementing double-digit rate increases. These increases are driven by higher repair costs, increased claims severity, and inflationary pressures. For example, Allstate has raised rates by up to 30% in some areas. These hikes reflect the growing costs of auto insurance in the state (Money) (WA Insurance Commissioner).
Regulatory Changes
The California Department of Insurance has been active in addressing the insurance crisis by working to expedite the rate filing process. Governor Gavin Newsom has also highlighted the need for regulatory reforms to improve the availability of insurance for homeowners, drivers, and businesses in the state. Changes to Proposition 103, which requires prior approval for rate changes, are being discussed to streamline the process and enhance market stability (Insurance Journal).
These updates underscore the dynamic nature of the auto insurance market in California, marked by regulatory changes, rising costs, and efforts to re-enter and stabilize the market.
For more detailed information, visit Insurance Journal and Policygenius.
