Motorists are expected to pay more for car insurance this year as insurers continue to push for rate hikes.
Based on auto insurance rate hike filings submitted by insurers for the six months from August last year to January this year, 74 insurers requested 99 rate hikes, averaging 24.7 percent, according to the California Department of Insurance.
American Modern Property & Casualty Insurance led with the highest rate increase at 84.6%, followed by Encompass Insurance at 65.7%.
Northpoint, Praetorian, QBE, and Stonington Insurance each requested a 58.3% increase, and seven insurers requested increases of 40% or more.
Notable insurers like Geico (25.7%), National General (23.7%), Progressive (19.9%), California Automobile (14.9%), and both Farmers and Mid-Century (7% each) also proposed increases.
Bankrate’s recent data shows that the state’s average annual comprehensive auto insurance rate is $2,692, 5.8% above the national average of $2,545.
Los Angeles’ average annual rate is $2,992, marking an 11% increase over the state average and 18% over the national average.
Families insuring a 16-year-old face a steep premium of $6,183 annually, which is 107% and 130% higher than the averages for Los Angeles and the state, respectively.
Premiums vary significantly by age; 18-year-olds cost $5,573 annually on a parent’s policy versus $7,500 individually—a 35% increase. For 20-year-olds, the figures are $4,126 under parental coverage and $5,032 individually, marking a 22% rise.
” Many inquire about individual policies for their children due to high premiums, yet including them on the parent’s policy remains significantly more cost-effective.,” said Mark Jung, CEO of MJ Insurance.
Drivers with DUI records face an average annual premium of $6,128, which is 128% above the state average.
Additionally, individuals with at-fault accident histories will pay $4,206, and speeders will pay $3,655, marking increases of 56% and 36% above the state average, respectively.
Insurance rates vary by city, with rates generally higher in denser areas due to varying costs for repairs, parts, and medical expenses.
In California, Pacoima holds the highest annual comprehensive insurance premium at $3,174, 16% above the state average, whereas Discovery Bay, near San Francisco, offers the lowest at $2,482.
In Southern California, beyond Los Angeles, annual comprehensive insurance premiums in areas with significant Korean-American populations range from $2,537 in Brea to $3,133 in La Crescenta, with other cities like Irvine, Fullerton, and Pasadena also varying.
Insurance costs also depend on the vehicle model, with premiums from $2,289 for a Honda Odyssey to $3,267 for a BMW 330i, showcasing the range for popular models like the Ford F-150 and Toyota Camry.
BY NAKI PARK, HOONSIK WOO [park.naki@koreadaily.com]
