California's homeowners insurance crisis is growing and spreading to car insurance

“I’m worried for my business, I’m worried for my clients, I’m worried for me, I’m worried for my employees."

Some insurance carriers have stopped writing new homeowner policies in California. The most recent are the largest so far: Allstate and State Farm. And now the problem is leaking into the car insurance market.

Reporter Kitty Alvarado has the story.

[dave]

What people aren't being told - California has rate controls, the companies cannot increase rates to meet current costs provide coverage.
Just like any other business, if you are not allowed to operate without loosing money, you get out of the market.

[SSY]

My auto insurance rate jumped by 43% overnight despite 20 yrs of flawless record with the same insurance company. Unfortunately shopping around doesn't help since quoted price from competitors are even higher

[trielerinor]

Did nobody notice the 'we used to be in your balls, Lenny, Christina Erik, Happy Father's day' mug 😂😂😂

[larryhutchens]

Insurance companies, when the money is flowing in their direction then everything is good & happy but when the money flows the other direction you have to hire a lawyer to force them to do what they are supposed to do.

[edward.abraham]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[thomasklein]

Everyone wondered how they were going to implement " You will have nothing and be happy" Now we know, we won't be able to insure our homes and auto's, and won't be able to finance them at respectable rates. If you can't finance them or insure them, you can't own them. They will suspend you license if you drive without auto insurance, and your lender won't allow you to own a home with a mortgage without insurance.

[travist.]

The California economy is based on almost everyone driving a car. If auto insurance becomes unavailable, the state will be forced to repeal the mandatory insurance law.

[JPDouglas]

This happened to me today. I missed a payment and was dropped. I called my broker who said the cheapest car insurance he could find for me was $635 per month. Pay your insurance and make sure to not miss a payment. This is not right.

[Judy-mney]

I fired Allstate Insurance about 8 years. ago. Heres my story: Im now 76, had Allstate since I started driving at 16, owned my first home at 23 and had both homeowners and auto for 2 cars. Moved 2 more times and each time took Allstate with me. After more than 50 years I had my first minor auto claim ($1200.00). My first auto or homeowners claim mind you. No, I said no traffic violations. Not many people can say that. Well, to show their appreciation, they raised my rates significantly for a claim of $1200, 00. I fired them, they had no customer loyalty at all. I was the one who did the right thing and waited for the owner to come out of the store after I scratched their door.
That taught me a lesson, just drive away, never do the right thing, you will be punished. Go to hell Allstate, insurance is a rip off anyway.

[shammusomalley]

they'll mandate electric cars, but you can't get insurance with an electric vehicle in your house, or a power wall in your garage, because they burst into flames. that's the future. you loose

[frankblangeard]

The median price of a home in California is over $700, 000. Doesn't that make a difference in how much a policy costs?

[Sarcastic_Asmodeus]

In short, insurance monopolies want less regulations. Florida is going through the same problems with these insurance companies.

[glep]

Insurance companies do not like paying claims. I had two claims in two years from people hitting my parked car. Each claim was less than my yearly insurance premiums. But, the insurance company sent me a unhappy letter pointing out that two such claims was outside of the norm. No duh! That is the reality of providing insurance. Some events are outside of the norm...

[bryans.]

Or could it be that the insurance companies are have to pay so much for all the repairs, thefts, lawsuits. That your $100 a month payments just can’t keep their heads above water.

[captainron]

I have had USAA for over 30 years and will never change

[davidclark]

Blaming the insurers is understandable--we all have insurance stories. But to blame them overall for an insurance crisis in one particular state is the easy way out. It is, basically, a competitive market. California needs to examine its own insurance laws that were intended to protect the consumer, but are having the opposite effect. Rules like those always seem to have unintended consequences.

BTW, at 5:12 you can see why insurance is needed in CA.

[exoticworldreview]

0:45 the we “We used to live in your balls coffee mug” says it all 🤪🤣

[CharlieBam]

Printing too much money eventually makes the whole thing unbalanced. Insurance companies are just adjusting to extremely stupid politicians

[kathysanders]

Insurance companies go by your credit also if you haven’t paid your rent and your credit sucks insurance companies are starting to understand you are a bad risk

[erichearduga]

I've always hated insurance, and have a little as I can get away with throwing money