California Insurers Push Car Premiums Up 33% Since Pandemic, LA Times Reports
Car insurance prices are climbing sharply across California, with the increases now hitting millions of drivers renewing their policies.
The surge matters beyond the state because California’s insurance market is one of the largest in the country and often signals broader industry trends.
Rates charged by insurers covering roughly 85% of California auto policies have climbed more than one-third since the pandemic, according to reporting by the Los Angeles Times.
The increases followed several rounds of approved rate hikes after pandemic-era restrictions temporarily limited insurers’ ability to raise prices.
Data cited by the Los Angeles Times shows the state’s largest insurers received approval for increases of about 13% in 2023, 15.4% in 2024, and another average increase near 6% in 2025.
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“Add it all up and rates by insurers covering most California drivers climbed more than one-third since the pandemic,” the newspaper reported.
Insurers argue the spike reflects a surge in claims costs driven by expensive repairs, more vehicles on the road after lockdowns, and rising theft and accident rates.
Modern vehicles equipped with sensors, cameras and advanced safety systems can dramatically increase repair costs after even minor collisions, industry analysts say.
Another factor is policy changes. California raised minimum auto insurance liability requirements in 2025, which can increase premiums when drivers renew policies.
The trend is closely watched nationwide because similar cost pressures — including repair inflation and higher accident claims — are affecting insurers across the United States.
More rate filings and regulatory decisions are expected in the coming year as insurers continue adjusting prices to match rising claim costs.
For millions of drivers, the next policy renewal could bring another increase.
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