By Jerry Linscheid
This is mostly for our California customers, but no state is completely immune from the increases in auto insurance rates.
Our primary auto carrier, Encompass, will be taking a substantial rate increase effective October 27, 2024. Every company we know of in California (that is willing to write auto insurance) has taken large rate increases. It’s more a question of when, not “if” they will increase their rates.
It’s easy to point fingers or blame the companies. But, as I was reminded at a recent conference, insurance rates are a reflection of increased claims costs, not the cause. After COVID when people started driving again, claims costs spiked primarily due to:
- Increased costs of auto repairs.
- Increased medical costs for injured parties.
- Increased litigation costs.
- Poorer driving (distracted and road rage).
- Increased driving than pre-COVID.
See our previous article on auto insurance rates. Please know that we experience these higher auto insurance rates in our personal lives, just as you do. We will do everything we can to minimize the impact on you.
