Major car insurance companies getting out of California

Major auto insurers are pulling back in the California marketplace because they say drivers in the state are just too expensive to insure.

[Proer]

Don't you just love it when they don't tell you the whole story? What about the increase in auto thefts and break-in? The D.A. won't even prosecute a lot of these cases because there are so many they would fill the prisons in no time. The insurance companies are leaving for the same reason that retail stores are leaving, they can't make money because crime is out of control and goes unpunished.

[steveguillory]

I worked in this industry in CA for well over a decade and can tell you the cost to repair vehicles has increased exponentially over the past several years. Bumpers that used to cost several hundred dollars are now several thousand. Headlights used to be a few hundred can now be upward of $5k on some cars. Why this increase? Radar, cameras, LiDAR, etc now live behind the bumper and get damaged. These are part of the advanced safety systems in new cars. As for headlights, led, adaptive and all those fancy light signatures everyone likes are very expensive to replace. If the department of insurance won’t allowed carriers to charge a rate commensurate with the risk, expect more carriers to stop selling

[jimfesta]

I was a casualty insurance adjuster in California for 30 years. Aside from the high costs of collision and property damage claims. California insurance companies pay out a great deal of money for questionable bodily injury claims.

[christophergarcia]

Why don’t they charge those terrible drivers the 25%

[oeao]

Haven't had an accident in 10 years...and I spoke to the DMV they told me insurance companies are only suppose to look at those accident for 3 years...and yet my rates still don't go down

[thundershirt]

As a NYC paramedic for over two decades I can attest that fraud is absolutely rampant. And when the fraud is fought, the lawyers get a payday that way. We consumers lose both ways. We had a van full of people get tapped when the person behind them was parking, two of them claimed whiplash. At parking speed. Modern cars are so safe that I see very few observable injuries (I work in Manhattan, with little in the way of highways, tho). All of the safety gains, which should be passed on to us in lower insurance, just gets made up in fraud.

[KING]

There's too many ppl driving with NO insurance no license and either a foreign national or an illegal.

[kylohurtado]

When crime goes unpunished others pay the price for it.

[ypcomchic]

During the pandemic my auto insurance company sent me a check for $1.00. Was that the savings she was talking about!? 😅😂😂😂

[ElleryOmur]

We need to be more restrictive with handing out driver's licenses, and also require more stringent driving tests. Of course, improved public transportation would help as well.

[jeepthing]

Yeah the payouts are one thing, but it's also the massive fraud, theft claims, # of uninsured and unlicensed drivers which only is getting worse. Since property theft is basically legal and encouraged in CA, and the Dept of Insurance's tough rules on not allowing the non-renewing people who make tons of claims. It's a terrible environment for insurance companies to continue. You know things are bad when GEICO doesn't want any more customers.

[Tangent]

7% increase? I just got my renewal and it's up by about 50%. That's with a completely spotless record, no changes to address or coverage, and commuting 75% less than pre-pandemic. Shopping around gave me quotes that were *all* that high.

[jasonmartinez]

Looks like auto insurance is gonna get a lot more expensive in California. California drivers start your engines... and grab your ankles!

[saynotopw]

That is a funny angle to take. I used to take per-use insurance “Metromile” and they literally kicked me out of insurance for driving too few. In other words, they didn’t like that I was too safe, which seems contradictory to what they say over here on this video.

[JustAnAverageCatapillar]

Driving on the freeway in California and I see tons of old cars with paper plates or no plates... im sure half the people around me have no insurance...

[ryanbarker]

'consumer friendly, ' lol. well, i guess when you can shoplift $950 and that's a misdemeanor, that's pretty 'friendly.'

[effend]

Everyone has to keep in mind that these are the major insurance companies that were mentioned. The ones who do all the advertising and stadium naming rights, which cost them millions/billions.

[denniedollreborn]

Bro it’s an insurance. They are taking the risk of insuring people. Insurance shouldn’t be for profit

[xq]

you can thank the fact that modern cars are so expensive to repair in the first place that minor collisions can total them. and you can also thank large discrepancies in vehicle weights and bumper heights that cause severe damage to smaller car thus totaling them. and the lack of moral standards of modern people, not treating driving like it is dangerous.

[allyourbase]

Uninsured “illegal” drivers are raising costs.