California's Insurance Catastrophe Explained—How Government Caused Another Crisis | What's Ahead

Steve Forbes explains why insurers are refusing to take new business in California—and why it should be a "wake-up call" for all politicians, citizens, and corporations.

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[CFaute]

Dealership: "You need insurance today to drive the car off the lot."

Insurance Company: "We no longer provide same day insurance to motorists."

[thekingofthings]

US Law: "you cannot drive a car without insurance."
Insurance Co's: "You cannot have insurance because we don't want you."

[ctcv-tokq]

I just got a notice from my home insurance company that my policy will be dropped in January. I've been looking at leaving California for some time now but not real seriously. I believe I just took a giant step forward toward that possibility.

[jenningsmills]

Well it seems to be one way to get people out of their 2.9% mortgage.

[aquilifergroup]

You’re all the same. You just want our money. Please don’t pretend you care about us.

[mchume]

My homeowner's insurance here in San Diego, due in September, went from $983 annually to $1992 annually. Slightly more than doubled.

[flashnmb]

California regulations make it impossible to do business; leave, voters need to reap the consequences. Democratic Paradise!

[patrickorourke]

The CA dept of insurance created this crisis and they know it. Commissioner Laura and his dept refused to issue auto rate increases for two years during COVID. He even had the audacity to claim insurance companies haven’t been asking for adequate rate, when in reality the dept rarely approves anything over 6.9% (Wawanesa and Root being the exception 33% and 65% rate hikes respectively). God forbid we ask for 7% or more because that triggers public hearings where consumer groups can argue why they shouldn’t take rate.

The home insurance market is even worse with a lot of carriers non-renewing clients or reassessing fire line scores. Couple that with soaring reconstruction costs, labor shortages, and inflation and it’s a recipe for disaster.

I’ll say this, if you plan on shopping your insurance, do it MNIMUM 30 days in advance. Cooperate with your agent and get ALL DOCUMENTS signed and completed ASAP and cooperate when we ask for additional underwriting information.

[Iluvpaws_]

Prop 103. Voting stupid has consequences

[billhinkle]

Imagine that- Tree huggers causing massive forest fires!
"Oh the humanity"

[CRDrawing]

How can you say existing policies won’t be affected when they’re dropping long term clients with no claims?

[larryhutchens]

Oooh, the guvmint caused another crisis. Greedy insurance companies don't have a damn thing to do with it? When money is flowing into their coffers all is good, along comes several disasters back to back and the money starts flowing the other direction and they yell foul.

[ccbegfc]

Our insurance jumped from $1500 to $10, 700. That’s a big hit for a school teacher. We are stuck.

[michelleamin]

After decades of paying the same insurance company, how could the government let them just dump you like this. So damn sad how corrupt everything has gotten.

[B.M.-iltf]

Buckle up butter cups it's going to get worse.

[erniewinn]

California Democrats in collusion with big insurance companies are dropping these policies and forcing older homeowners to have more expensive insurance because property taxes and insurance is so low since they bought the house in the 50s and 60s. California Democrats are forcing them into foreclosure so that the rich Chinese will buy these homes and thus pay the higher property taxes. State Farm will rather underwrite this new policy for the Chinese because its tens of thousands more a month, rather than the measly $100 a month from the struggling American Aging Middleclass, with fixed income and cannot afford the rising taxes and inflation.

[duanelinstrom]

Get our Insurance Commissioner on the phone, Steve. Tell him we need home ownership’s insurance. Thanks.😊

[AWKuhns]

Thanks Steve. Maybe as part of your PSA you should suggest the power of voting.

[ggalloway]

Editorials need to be titled as such.

Also, you didn't mention what the regulations were, nor how they impacted some of the insurance companies.

[dianascrimger]

Can Californians legally sue Gavin Newsome and Richard Lara the California insurance commissioner for cancelling our state farm insurance coverage on our homes? We do not have car insurance when we only have a California id card. We do not have a car! For medical reasons we do not drive! We had cataract and glaucoma eye shunt surgery!