The COVID-19 pandemic disrupted a lot of things about normal life, and car insurance is one of them. California officials forced insurance companies to lower their rates for drivers as they drove less during the lockdown. Now, a few years removed from the worst of the pandemic, California is opening the doors for car insurance rates to skyrocket.
Over the last six months, the California Department of Insurance has approved rate hikes for California’s largest auto insurance providers. GEICO, Mercury, Allstate, and other providers all received the go-ahead to raise their insurance rates by 6.9%. This percentage is the largest rate hike that these companies can get approval for without a public hearing.
While that may not seem that high at first glance, it means that consumers will lose out on a lot of money. Over the course of a year, this rate increase will mean hundreds of dollars out of your pocket. And there’s no guarantee that these insurance companies won’t continue to raise rates going forward.
On top of the increases that have already been approved, the Department of Insurance has 97 requests for rate hikes that it’s working its way through right now. These increases are from pretty much every major auto insurance company in the state. With these potential rate increases looming, it’s important for consumers like you to know what you can do.
What can you do about your car insurance rate in California?
Insurance experts recommend that you shop around regularly for better car insurance rates. Looking around the insurance market every six months can help you get the best rate for your insurance, as rates change regularly from company to company. So, if you see your insurance rates skyrocket in the coming months, make sure you’re not getting overcharged. Take a look at other major insurers to see if you can get a better rate.
You can also get commercial auto insurance, which is often far cheaper than personal auto insurance. Believe it or not, you do not need to own a business to qualify for commercial insurance! Most people are unaware that this is even an option, so you should definitely look into whether or not you qualify. And SafeLine Insurance’s commercial auto insurance team can help you qualify for these savings. Contact us today to see if you can save on your car insurance this year in California!