Car insurance rates have increase significantly in the past few years. In fact, a recent report by Insurify indicated that rates in California have been increasing by at least 50%. This is highly unusual and I can’t think of the last time this has happened. So the question is…why? Generally speaking, claim costs have drastically gone up in the past 3 years. Here is an infographic from Mercury Insurance that shows some of the factors in the higher claim costs. So, the next question is, what can we expect in 2025? Most insurance companies are reporting that the recent rate changes and other adjustments are getting them to a point of stability. So I don’t expect a lot of rate increases (if any) next year and there is actually a chance that some companies may lower the rates. But I should point out that some drivers that have basic liability limits right now may see an increase next year because as of January 1st 2025, the State of California is raising the minimum insurance limits to $30,000 bodily injury per person, $60,000 bodily injury per accident and $15,000 property damage. Right now, they are $15,000, $30,000 and $10,000, respectively. If you have any questions about your rates & need to find opportunities to lower your premium, please call our Bell Gardens office at (323) 773-4429 for assistance.
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