As I wrote last month, the insurance companies are losing money. They are trying desperately to increase rates, but need to wait for the department of insurance to review their requests. Some rate increases have just been approved, such as Progressive Auto, which received a 17% rate increase approval and will go into effect on March 24th. This will affect new policies and renewals moving forward.
Other insurance companies will be following suit (as quickly as they can get approved).
There is not a week that goes by that insurance companies are not reminding us of how unstable the market is right now. Most insurance companies do not want new business in California. They have closed zip codes or just turned off the ability for us to start quotes. The inflation hit the insurance companies hard. They have lost a lot money. They feel tired and it is just not a good investment for them. I know that is hard to hear, because we think insurance companies are making tons of money. They have big ads on TV, sponsor a lot of sporting events or stadiums, so it appears they have money. The reality of it is, they might make some money in other states, but they are not in CA. And since CA is a large part of their business, they are trying very hard to increase rates, just to break even.
We know every other expense in your life has been on the rise, unfortunately, the bumpy road is directly ahead for insurance. Brace for impact...we will get through it...together.
