Noah Baustin

I thought it must be a mistake. There was no way the auto insurance premium on my 2015 Toyota Corolla was about to jump 30% after a year without a single accident or speeding ticket. But that’s exactly what my renewal documents said when I opened them in December.

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I thought it must be a mistake. There was no way the auto insurance premium on my 2015 Toyota Corolla was about to jump 30% after a year without a single accident or speeding ticket. But that’s exactly what my renewal documents said when I opened them in December.

Of course, I bemoaned the coming expense at the water cooler, only to learn that my colleague&#8217;s policy on his Subaru Crosstrek was cranking up 50%.&nbsp;

Of course, I bemoaned the coming expense at the water cooler, only to learn that my colleague's policy on his Subaru Crosstrek was cranking up 50%.&nbsp;

Of course, I bemoaned the coming expense at the water cooler, only to learn that my colleague&#8217;s policy on his Subaru Crosstrek was cranking up 50%.&nbsp;

Armed with my cellphone and the go-ahead from my editor to investigate on company time, I set out to fix my insurance woes, confident that I’d find a cheaper option within an hour.

Armed with my cellphone and the go-ahead from my editor to investigate on company time, I set out to fix my insurance woes, confident that I’d find a cheaper option within an hour.

It took a series of dropped calls, apologetic agents and disappointing celebrity endorsements before I realized how wrong I was to have expected a speedy solution. And my research uncovered why <a href="https://sfstandard.com/2023/12/11/california-car-insurance-rates-delays/">people across California</a> are about to face the same frustrating situation.

California car insurance is getting more expensive. Here&#8217;s why

It took a series of dropped calls, apologetic agents and disappointing celebrity endorsements before I realized how wrong I was to have expected a speedy solution. And my research uncovered why <a href="https://sfstandard.com/2023/12/11/california-car-insurance-rates-delays/">people across California</a> are about to face the same frustrating situation.

<h2 class="wp-block-heading" id="h-dialing-for-dollars">Dialing for Dollars</h2>

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<h2 class="wp-block-heading" id="h-dialing-for-dollars">Dialing for Dollars</h2>

An initial internet search brought me to the California Department of Insurance’s <a href="https://www.insurance.ca.gov/01-consumers/105-type/1-auto/index.cfm">automobile premium comparison tool</a>. It generated a list of dozens of insurance companies, and I started calling the companies that seemed to advertise the cheapest options.

An initial internet search brought me to the California Department of Insurance’s <a href="https://www.insurance.ca.gov/01-consumers/105-type/1-auto/index.cfm">automobile premium comparison tool</a>. It generated a list of dozens of insurance companies, and I started calling the companies that seemed to advertise the cheapest options.

My new policy from Amica Mutual would cost $994 for six months. The sample rates displayed from other companies on the list appeared temptingly low by comparison, with the best ones offering six-month policies for as cheap as $405. I hadn’t heard of most of the companies but figured for a bargain like that, they would be worth a shot.

My new policy from Amica Mutual would cost $994 for six months. The sample rates displayed from other companies on the list appeared temptingly low by comparison, with the best ones offering six-month policies for as cheap as $405. I hadn’t heard of most of the companies but figured for a bargain like that, they would be worth a shot.

When I called the phone number for State National Insurance, which the list forecast would be my most affordable bet, Tesla Insurance picked up. After about 10 minutes on hold listening to a looped recording of instructions on how to download the Tesla app, I decided that, as a Corolla owner, this was probably not going to be a good fit. (I emailed Tesla Insurance asking if it covers Toyota Corollas and was told that representatives could not answer the question via email.)

When I called the phone number for State National Insurance, which the list forecast would be my most affordable bet, Tesla Insurance picked up. After about 10 minutes on hold listening to a looped recording of instructions on how to download the Tesla app, I decided that, as a Corolla owner, this was probably not going to be a good fit. (I emailed Tesla Insurance asking if it covers Toyota Corollas and was told that representatives could not answer the question via email.)

An aerial drone view, of a customer walking around a Nissan car dealership in Richmond on February 9, 2023. Nissan reported better-than-expected 155 percent surge in auto and vehicle purchases in third quarter operating profits of 133.1 billion yen compared to analyst expectations of 104.79 billion yen for the three months ending on Dec. 31.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/inlined01_20240122carinsurancejourney.jpg?w=2500" alt="An aerial view of a Nissan dealer, including a customer and several cars." class="wp-image-241594"/><figcaption class="wp-element-caption">A customer walks around a Nissan car dealership in Richmond. California car owners will soon have to deal with rising auto insurance rates.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/inlined01_20240122carinsurancejourney.jpg?w=2500" alt="An aerial view of a Nissan dealer, including a customer and several cars." class="wp-image-241594"/><figcaption class="wp-element-caption">A customer walks around a Nissan car dealership in Richmond. California car owners will soon have to deal with rising auto insurance rates.</figcaption></figure>

The next company on the list directed me to call a local agent, so I chose Fidelity Insurance Services Inc. in Berkeley. This time, I got through to a person. Speaking over the babble of a busy office, Patsy Renteria told me that her independent insurance agency, which works with a number of companies, was no longer taking on stand-alone auto insurance policies in California. That’s because the larger companies the agency works with have all put strict restrictions on which auto insurance policies they’re willing to write, and some have pulled out of the state altogether.

The next company on the list directed me to call a local agent, so I chose Fidelity Insurance Services Inc. in Berkeley. This time, I got through to a person. Speaking over the babble of a busy office, Patsy Renteria told me that her independent insurance agency, which works with a number of companies, was no longer taking on stand-alone auto insurance policies in California. That’s because the larger companies the agency works with have all put strict restrictions on which auto insurance policies they’re willing to write, and some have pulled out of the state altogether.

Auto insurers in California are legally required to sell insurance to anyone who qualifies as a good driver, though there have been <a href="https://sfstandard.com/2023/12/24/auto-insurance-ricardo-lara-california/">widespread reports</a> of companies shirking that rule.

California auto insurers under fire for limiting access to policies

Auto insurers in California are legally required to sell insurance to anyone who qualifies as a good driver, though there have been <a href="https://sfstandard.com/2023/12/24/auto-insurance-ricardo-lara-california/">widespread reports</a> of companies shirking that rule.

I could potentially get auto insurance through her company if I were packaging it with homeowner’s insurance, Renteria explained, but I don’t own my home. Packaging my auto insurance with renter’s insurance, she said, wouldn’t do the trick. 

I could potentially get auto insurance through her company if I were packaging it with homeowner’s insurance, Renteria explained, but I don’t own my home. Packaging my auto insurance with renter’s insurance, she said, wouldn’t do the trick.

I hung up without even getting a quote.

<h2 class="wp-block-heading" id="h-prices-climbing-across-the-industry">Prices Climbing Across the Industry</h2>

State Farm, California’s largest private insurer, made waves earlier this month as <a href="https://sfstandard.com/2024/01/09/state-farm-allstate-homeowners-auto-insurance-increase/">news broke that it was raising its auto insurance rates</a> by 21% in February. But State Farm is just one of more than 100 insurance companies that secured permission from the California Department of Insurance in 2023 to increase personal auto insurance rates. Other big names like Allstate and Farmers locked in 30% rate increases, while Geico got the green light for a 65% bump to its motorcycle premiums. Regulators told the Amica Mutual Insurance Company, which covers my Toyota Corolla, that it could raise its premiums by an average of 27%.

California’s largest insurer raises auto and home insurance rates by 20%

State Farm, California’s largest private insurer, made waves earlier this month as <a href="https://sfstandard.com/2024/01/09/state-farm-allstate-homeowners-auto-insurance-increase/">news broke that it was raising its auto insurance rates</a> by 21% in February. But State Farm is just one of more than 100 insurance companies that secured permission from the California Department of Insurance in 2023 to increase personal auto insurance rates. Other big names like Allstate and Farmers locked in 30% rate increases, while Geico got the green light for a 65% bump to its motorcycle premiums. Regulators told the Amica Mutual Insurance Company, which covers my Toyota Corolla, that it could raise its premiums by an average of 27%.

California’s insurance companies are playing catchup on auto insurance rates that have been artificially suppressed for years, according to Janet Ruiz, a spokesperson for the Insurance Information Institute, an industry trade group. Regulations requiring state approval for increases are keeping the rates too low, she said.

California’s insurance companies are playing catchup on auto insurance rates that have been artificially suppressed for years, according to Janet Ruiz, a spokesperson for the Insurance Information Institute, an industry trade group. Regulations requiring state approval for increases are keeping the rates too low, she said.

Covid-era inflation has jacked up the cost of repairing a vehicle, putting additional stress on insurers’ margins, Ruiz said.

Covid-era inflation has jacked up the cost of repairing a vehicle, putting additional stress on insurers’ margins, Ruiz said.

An aerial drone view, of new and used cars for sale at an automobile dealership in Glendale on February 15, 2023 . The Commerce Department released data today showing that retail sales saw a three percent jump in January, the biggest gain in almost two years. Sales increased 6.4 percent at automobile and other vehicle dealers.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/inlined02_20240122carinsurancejourney.jpg?w=2500" alt="An aerial view of cars in a parking lot." class="wp-image-241595"/><figcaption class="wp-element-caption">Dozens of cars for sale are parked at an automobile dealership in Glendale. Regulators have given companies permission to hike rates across the board. </figcaption></figure>

In 2022, some of California’s largest auto insurance companies paid more for their claims and operating expenses than they took in in premiums, according to Ruiz. Some <a href="https://www.latimes.com/business/story/2023-08-28/farmers-insurance-lays-off-2-400-workers">turned to layoffs</a> to cut down on expenses.

In 2022, some of California’s largest auto insurance companies paid more for their claims and operating expenses than they took in in premiums, according to Ruiz. Some <a href="https://www.latimes.com/business/story/2023-08-28/farmers-insurance-lays-off-2-400-workers">turned to layoffs</a> to cut down on expenses.

“We can’t continue to lose money,” Ruiz said.

“We can’t continue to lose money,” Ruiz said.

On the other side of the issue is Carmen Balber, executive director of Consumer Watchdog, whose organization’s founder drafted the 1988 measure Proposition 103, which regulates the insurance industry. While there has been inflation in recent years, Balber says there are other factors at play.

On the other side of the issue is Carmen Balber, executive director of Consumer Watchdog, whose organization’s founder drafted the 1988 measure Proposition 103, which regulates the insurance industry. While there has been inflation in recent years, Balber says there are other factors at play.

“The industry is taking advantage of the moment where we see real cost increases to grab as much as they can,” Balber said.

“The industry is taking advantage of the moment where we see real cost increases to grab as much as they can,” Balber said.

<h2 class="wp-block-heading" id="h-can-i-just-get-a-quote">Can I Just Get a Quote?</h2>

After hitting a brick wall with a local broker, I decided to go for a big name. I called The General Car Insurance, whose animated mascot stands side-by-side with Shaquille O’Neal in <a href="https://www.youtube.com/watch?v=FgOrfg5IwaY&amp;t=9s">colorful commercials</a>. After (a recording of) the big man himself welcomed me to The General, a less-recognizable recorded voice let me know that The General wasn’t offering insurance in my area. After finally being informed that nobody was available to take my call, I was abruptly hung up on.

After hitting a brick wall with a local broker, I decided to go for a big name. I called The General Car Insurance, whose animated mascot stands side-by-side with Shaquille O’Neal in <a href="https://www.youtube.com/watch?v=FgOrfg5IwaY&amp;t=9s">colorful commercials</a>. After (a recording of) the big man himself welcomed me to The General, a less-recognizable recorded voice let me know that The General wasn’t offering insurance in my area. After finally being informed that nobody was available to take my call, I was abruptly hung up on.

Metromile, the company that insures the colleague I commiserated with over rising insurance rates, also said it wasn’t offering policies in my ZIP code.

Metromile, the company that insures the colleague I commiserated with over rising insurance rates, also said it wasn’t offering policies in my ZIP code.

Next, I tried American National, and the website referred me to its Bay Area agent, Karan Park. After a quick chat, Park, who works with multiple companies, sent me a list of documents she’d need before sending back a quote. They included a copy of my vehicle registration, a photo of my driver’s license, proof of residency from a utility bill and pictures of my vehicle from all four sides.

Next, I tried American National, and the website referred me to its Bay Area agent, Karan Park. After a quick chat, Park, who works with multiple companies, sent me a list of documents she’d need before sending back a quote. They included a copy of my vehicle registration, a photo of my driver’s license, proof of residency from a utility bill and pictures of my vehicle from all four sides.

I was surprised. In December, California Insurance Commissioner Ricardo Lara put out a <a href="https://www.insurance.ca.gov/0250-insurers/0300-insurers/0200-bulletins/bulletin-notices-commiss-opinion/upload/Bulletin-2023-7-Requirements-for-Complete-Rate-Applications-and-Issuing-Good-Driver-Discount-Policies.pdf">bulletin</a> in response to widespread allegations that insurers were <a href="https://sfstandard.com/2023/12/24/auto-insurance-ricardo-lara-california/">dodging their legal obligation</a> to offer and sell insurance to everyone with good driving records. The bulletin said that requiring the exact documents Park asked for wasn’t allowed because they amounted to unreasonable application requirements.

I was surprised. In December, California Insurance Commissioner Ricardo Lara put out a <a href="https://www.insurance.ca.gov/0250-insurers/0300-insurers/0200-bulletins/bulletin-notices-commiss-opinion/upload/Bulletin-2023-7-Requirements-for-Complete-Rate-Applications-and-Issuing-Good-Driver-Discount-Policies.pdf">bulletin</a> in response to widespread allegations that insurers were <a href="https://sfstandard.com/2023/12/24/auto-insurance-ricardo-lara-california/">dodging their legal obligation</a> to offer and sell insurance to everyone with good driving records. The bulletin said that requiring the exact documents Park asked for wasn’t allowed because they amounted to unreasonable application requirements.

I called Park back. She explained that she didn’t used to need all this documentation before giving out a quote. But in August 2023, American National began trying to limit its clientele, she said. For example, the company wanted to avoid insuring inexperienced drivers and drivers from other states.

I called Park back. She explained that she didn’t used to need all this documentation before giving out a quote. But in August 2023, American National began trying to limit its clientele, she said. For example, the company wanted to avoid insuring inexperienced drivers and drivers from other states.

She hadn’t heard about the December bulletin barring onerous paperwork, though.

She hadn’t heard about the December bulletin barring onerous paperwork, though.

American National adjusted its application requirements to comply with the December state bulletin, according to company spokesperson Scott Campbell. The firm does not require California applicants to provide copies of utility bills, vehicle registrations, photos of driver’s licenses or photos of their vehicles to receive an auto insurance quote, he said.

American National adjusted its application requirements to comply with the December state bulletin, according to company spokesperson Scott Campbell. The firm does not require California applicants to provide copies of utility bills, vehicle registrations, photos of driver’s licenses or photos of their vehicles to receive an auto insurance quote, he said.

In an aerial drone view, a customer enters a CarMax auto dealership in Santa Rosa on April 11, 2023. Used car retailer CarMax reported fourth quarter earnings of $0.44 per share compared to analyst expectations of $0.22 per share. The company reported revenues of $5.72 billion compared to $7.69 billion one year ago.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/inlined03_20240122carinsurancejourney.jpg?w=2500" alt="An aerial view of a person entering a Car max dealership." class="wp-image-241596"/><figcaption class="wp-element-caption">A customer enters a CarMax auto dealership in Santa Rosa. Insurance companies have made it harder and harder to get a rate quote. </figcaption></figure>

In a reaction to the doom-and-gloom financial forecasts of the past year, insurance companies have made it harder and harder to get a quote, even though they’re supposed to give one to every good driver, Balber said.

In a reaction to the doom-and-gloom financial forecasts of the past year, insurance companies have made it harder and harder to get a quote, even though they’re supposed to give one to every good driver, Balber said.

Insurance companies invest the funds from premiums in the stock market and other assets. Many people <a href="https://www.cnbc.com/2023/12/26/the-us-avoided-a-recession-in-2023-whats-the-outlook-for-2024.html">expected a recession in 2023</a>, which would have made it harder to profit from investments. So the insurance companies wanted to play it safe by limiting their customers to the people who were the least likely to need a payout on a claim, according to Balber. Everyone else got locked out.

Insurance companies invest the funds from premiums in the stock market and other assets. Many people <a href="https://www.cnbc.com/2023/12/26/the-us-avoided-a-recession-in-2023-whats-the-outlook-for-2024.html">expected a recession in 2023</a>, which would have made it harder to profit from investments. So the insurance companies wanted to play it safe by limiting their customers to the people who were the least likely to need a payout on a claim, according to Balber. Everyone else got locked out.

<h2 class="wp-block-heading" id="h-finally-a-quote-maybe">Finally a Quote, Maybe</h2>

Geico was the first company to actually offer me a quote.&nbsp;

Geico was the first company to actually offer me a quote.&nbsp;

After filling out Geico’s online questionnaire, the offer was actually about half of what I’m set to start paying when my plan renews with Amica. But the company will have to complete a 15-day underwriting review before it can confirm the plan, the online system said.

After filling out Geico’s online questionnaire, the offer was actually about half of what I’m set to start paying when my plan renews with Amica. But the company will have to complete a 15-day underwriting review before it can confirm the plan, the online system said.

That’s where I stand today. I’m waiting to hear back from Geico, feeling worried that the tentative offer from the website is too good to be true, which has happened to <a href="https://sfstandard.com/2023/12/11/california-car-insurance-rates-delays/">other Californians in recent months</a> as they try to close the deal on bargains.

That’s where I stand today. I’m waiting to hear back from Geico, feeling worried that the tentative offer from the website is too good to be true, which has happened to <a href="https://sfstandard.com/2023/12/11/california-car-insurance-rates-delays/">other Californians in recent months</a> as they try to close the deal on bargains.

I’m not sure what I’ll decide. If the Geico offer comes through, maybe I’ll join Team Gecko.

I’m not sure what I’ll decide. If the Geico offer comes through, maybe I’ll join Team Gecko.

Either way, given the <a href="https://sfstandard.com/2023/09/25/california-just-announced-a-new-insurance-strategy-heres-why-its-controversial/">recent volatility in the insurance market</a>, I can’t shake the feeling that I may very well find myself doing this same search a year from now.

California’s new home, auto insurance strategy is controversial. Here’s why

Either way, given the <a href="https://sfstandard.com/2023/09/25/california-just-announced-a-new-insurance-strategy-heres-why-its-controversial/">recent volatility in the insurance market</a>, I can’t shake the feeling that I may very well find myself doing this same search a year from now.

My car insurance is skyrocketing. Here’s what happened when I shopped around

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My car insurance is skyrocketing. Here’s what happened when I shopped around