Did Wokeflation Cause California’s 40% Auto Insurance Rate Increases?

Although California ranks 42nd nationwide for the highest insurance rates, a 40% rate increase is nothing to be happy about. As many major California auto insurers like Allstate and GEICO flee California, auto insurance rates have risen recently. Many consumers, mainly the few Republicans left in California, blame woke, democrat policies that treat criminals like heroes and victims like privileged whiners. These residents say this cost is more than just inflation, calling it “wokeflation.”

What is Wokeflation?

Wokeflation is defined as Soros prosecutor soft on crime policies that have created catch and release and no bail policies. (Many voters believe billionaire George Soros funded soft-on crime prosecutors and got them elected so he could buy up property cheaply, etc.) In effect, criminals have free reign to rob, break into cars, and poop on the streets with little to no fear of the police. This means insurance companies must leave the state or raise rates, a form of inflation caused by criminal acts. The LAPD police union even-encouraged police who had already left the force to move somewhere they are appreciated. San Francisco cops are so demoralized. They, too, are leaving the police force in droves. So the cost is high to society in general. Either way, police have no general duty to protect people, and California leads the nation in trying to ban self-defense weapons and to circumvent concealed carry laws.

Families complain of being called “anti-Semitic” if they complain about so-called Soros prosecutors, encouraging them to flee what they call “woke” California policies. Gavin Newsom may have gotten the message, with the state’s top six remaining insurance carriers receiving approval to increase premiums for policyholders. These rate hikes could lead to an average increase of anywhere from $71 to $167 per policyholder, with California’s remaining middle-class families blaming Soros prosecutors and woke. The approved insurers include State Farm, Auto Club of Southern California, Mercury Insurance, Farmers, GEICO, and Allstate.

What does the Democrat California Insurance Commissioner say?

Insurance Commissioner Ricardo Lara says the department’s effort seeks:

“to make it right for consumers who continue to have been overcharged on premiums during the pandemic.”

However, a state appeals court ruled last year that Lara is out of line, disallowing him to punish companies with “retroactive rates and refunds.” The California Supreme Court refused to review the case. Insurers assert the ruling is a blanket ban on Lara’s attempts to require further insurance refunds. However, Lara’s office has decided to enforce the verdict narrowly.

Insurers are fed up with being forced to wait more than two years to raise rates and are pulling out of California, citing bad government. Even so, Lara’s opponent, Republican Robert Howell, is not expected to threaten Lara’s re-election bid. This makes sense; over 500,000 families have fled California’s woke, anti-business policies in the last two years. This leaves more anti-business judges to fill the courts and further vote for more benefits and higher taxes.

Is Crime Causing CA Auto Insurance To Skyrocket by 40%?

The California insurance industry faces stark choices. They are forced to flee or get the state to agree to higher auto insurance premiums. A recent report from Mercury Insurance highlights a significant increase in vehicle theft and vandalism in California, leading to a surge in comprehensive auto insurance claims in the state. In other words, car insurance payments are not going up due to car accidents but due to California’s soft-on-crime policies. According to the report, average comprehensive auto insurance claims have risen 40% since pre-pandemic levels to $2,291.

Northern California reported almost double Southern California’s comprehensive auto claim frequency, with areas of smaller population density experiencing higher theft rates than those with larger populations. Mercury Insurance’s complete claims data shows that the top five vehicles for claims during the pandemic were the Toyota Prius, Honda Accord, Honda Civic, Toyota Tacoma, and Toyota Camry. The Toyota Prius, in particular, stood out as a favorite among thieves, with nearly double the frequency of claims compared to other vehicles on the list.

More Conservative San Diego Gets a Tiny Break?

Autoists in San Diego County will be punished a little less, with these drivers paying an average of $2,270 for purchasing their auto insurance policies. Either way, the cheaper rate comparison of living in San Diego over the homeless encampments of Los Angeles, like Santa Monica or Venice, has left many customers packing up and moving away instead of relocating inside the state or shopping around for cheaper rates. Many military veterans we have spoken with blame the president and “illegal immigration” that has flooded the state with military-aged male criminals.

Democrats counter that housing, feeding, and caring for “migrants” matters more than affordable insurance. After all, they say, driving increases global warming. In other words, the left has accepted the downside is a choice we have to live with to have “clean air” and “cooler temperatures.” Either way, there is no relief for the consumers who stayed behind in California when it comes to a better day-to-day life.

Many struggle to pay for groceries due to the California gasoline taxes alone. Prices keep going up, and when the government gives out a tax-funded benefit, mandated pay raise, and reparations, it puts inflation and increased rents full steam ahead.

What Does the Insurance Information Institute Say?

“There are several reasons why this is happening,” according to Janet Ruiz, Director of Strategic Communication at the Insurance Information Institute think tank.

Ruiz does not puppet many conservatives, however, blaming many things.

“I think we’re all experiencing inflation when you go to get your car repaired,” according to Ruiz. “The cost to get parts, the labor shortage. All these things have increased.”

She seems not to acknowledge that it is a shortage of skilled labor, as Millenials have become career students at woke universities. Skilled labor has died off or left California for what Republicans call “free states” like Texas or Florida. Either way, these represent a significant drain on household income, further encouraging more Californians to flee the state.

California has indeed faced significant challenges when it comes to auto accidents and road safety. While it’s important to note that the statistics may vary over time, the state has faced some concerning trends.

Other Factors Affecting California

Auto Accidents

Due to its large population and extensive road network, California has more auto accidents than many other states. The dense urban areas, heavy traffic, and various road conditions contribute to this.

Highway Fatalities

California’s highways witness many fatalities due to the high volume of vehicles and various risk factors, such as speeding, distracted driving, and impaired driving.

Rear-End Crashes

Rear-end collisions are often caused by tailgating, distracted driving, or sudden stops. These accidents can lead to injuries and property damage.

New Drivers

New drivers, especially teenagers, may be at higher risk of accidents due to their limited driving experience and tendency for risk-taking behaviors.

Uninsured Drivers

California has a notable number of uninsured drivers, which can complicate matters for those involved in accidents. Uninsured drivers can make it challenging for victims to receive adequate compensation for damages.

Unlicensed Drivers

The state also faces the issue of unlicensed drivers, who may be involved in accidents without proper training or understanding of road rules. California has implemented various initiatives and programs to improve road safety, enforce traffic laws, and promote responsible driving behavior to address these concerns. Fewer people are left to pay rate increase requests; drivers in the Golden State can expect even higher rates on the horizon. The risk pool is shrinking more and more every day.

Newsom didn’t help things by refusing to approve rate increases for over two years. Several insurers have given up on writing new business after more drivers appeared after the cessation of lockdowns!

Theft Crime?

According to data from the National Insurance Crime Bureau, California has been identified as the top US state for car thefts, with motor vehicle thefts increasing by almost 24% since 2019. Despite the increase in auto theft, breaking windows to steal, and vandalism during the COVID-19 pandemic, Mercury Insurance notes that the theft of audio and other car parts continues to rise as pandemic restrictions are lifted. The insurer also highlights that nearly 22% of comprehensive claim losses occur at night, much arising in Soros prosecutor cities, including Los Angeles, Sacramento, and San Francisco Counties, leading to rising costs.

To protect against these risks, Mercury Insurance advises car owners to stay vigilant and adopt good practices when leaving their vehicles, such as parking in safe areas and avoiding taking valuable items inside. Many residents simply leave their windows rolled down, so criminals can have easier access and not break car windows. Although comprehensive coverage can provide extra peace of mind, ensuring that policyholders are covered from theft or vandalism incidents, deductibles are often more costly than a new window, and high premium costs provide many consumers don’t buy Comp and Collision. Being cautious and well-insured can help reduce the likelihood of falling victim to car theft or damage.

Dealing With Auto Insurers FAQ

To keep California car insurance rates down, drivers can follow these three tips:

Shop Around for Reduced Auto Insurance Premiums

Each insurance company evaluates an applicant’s risk differently, leading to varying rates. Comparing quotes from multiple car insurance companies can help drivers find the most affordable option.

Claim all Possible Car Insurance Discounts

Some discounts require drivers to opt in, such as driver monitoring programs. Enrolling in these less expensive programs can result in significant premium reductions. Either way, premium increases, and inflation are wiping out much of the savings. When you are left with a choice of putting food on the table or letting your policy lapse, you will always choose the former, despite qualifying for the discount in your risk group. Capiche?

Choose a Higher Deductible

One way the insurer can achieve adequate rates is to write higher deductibles. Raising the car insurance deductible often results in lower insurance premiums and lower risk to the insurer. For example, if a criminal breaks your window and steals stuff, you will pay for most of the loss while still paying California drivers’ rising costs. However, drivers should be prepared for higher out-of-pocket costs to replace or repair damaged or stolen property in case of an accident.

Bundle Coverage

One effective way to save on insurance costs is by bundling coverage. Many insurance companies offer discounts if you combine your auto, homeowners, or renters insurance policies. By bundling, you can enjoy the convenience of having multiple policies with the same provider and potentially save money on premiums.

Another aspect to consider is your deductibles. If you currently have a $500 deductible but have sufficient funds in a rainy-day account to cover a $1,000 deductible, you may want to consider raising your deductible. A higher deductible can lead to lower premiums, which can be a cost-effective option if you can afford to pay a higher amount out of pocket in the event of a claim down the road.

Conclusion – Auto Insurance Premiums Will Only Keep Going Up

Although wokeflation may be a cause of rising insurance, many factors like global warming play a role in voters reelecting Democrats. Global warming and the desire of many Californians to stick it to the insurance companies also play a role. All this seems to do is cause Republicans to push back by closing their small businesses and moving away, along with a significant tax base to spread the group risk pool.

However, by following these steps, California drivers can potentially get a lower price on their car insurance premiums and maintain the best insurance coverage for their needs. However, with the increasing costs of vehicle repairs, higher finance rates, and theft crimes, we expect many more drivers to move to more pro-business states like Nevada as real incomes shrink due to being hit with inflation.

It’s essential to review different insurers and consider more favorable discounts or rebates to make an informed decision. Remember that speeding tickets can also cause trouble when seeking a new policy. This is the best way to move forward if you can’t afford to flee California to a cheaper part of the nation, hundreds of miles away. If you have questions about car accidents, wrongful death, life insurance, or other ways to spread the cost risk of auto insurance rates, reach out to Ehline Law Firm for a free consultation today at (213) 596-9642.

Citations:

USA Today