California A brewing auto insurance coverage crisis
Who wants to pay more for car insurance? I don’t. And neither do any of the customers I serve as an independent insurance agent. But a potential auto coverage crisis is brewing in
Because of the large reduction in driving during the COVID-19 pandemic, auto insurers issued billions of dollars in refunds to millions of
Today, Californians are driving again at pre-pandemic levels. But unfortunately, the severity of auto accidents has increased, and across the nation, fatalities from car crashes soared by the largest annual increase ever. Repair costs have also gone up due to inflation and supply-chain disruptions.
Yet for the past two years, Commissioner Lara has refused to even review more than four dozen pending auto insurance rate filings requested by the state’s leading insurance providers — neglecting the insurance plans that collectively provide coverage to about 75% of
As a result, most
Commissioner Lara’s flat-out refusal to even consider any rate change applications is producing an environment in which
As an independent insurance agent on the front lines, I have already started to see the consequences of Lara’s inaction. Further delay will ultimately lead to an imminent coverage crisis where Californians will have far fewer coverage options to protect their vehicles and families.
In the last few months, we have seen a variety of insurance providers take steps to stop or reduce selling new auto insurance policies due to these unsustainable market pressures. Among the actions they have taken:
•Discontinuing the sale of all personal lines policies in
•Eliminating monthly payment plan options;
•Suspending sale of all new auto policies;
•Closing brick-and-mortar offices;
•Insurers are removing their companies from agent quote search engines to reduce their new business;
•Eliminating reinstatement options when a customer’s installment premium is not paid on time.
Commissioner Lara’s inaction is having a direct impact on consumer access to coverage options. So long as he continues to neglect his constitutional responsibility to ensure a healthy insurance market, consumer access to auto coverage will continue to degrade.
It’s past time for the commissioner to do the job he was elected to do. His department must immediately review the extensive data submitted by providers detailing their actual costs for covering consumer claims. It should then authorize rates that are necessary to cover the claims by consumers when they suffer from an insured accident.
Immediate action is necessary to prevent a full-blown coverage crisis, where consumers struggle to find auto insurance policies they need.
ConnectiCare to stop selling small group policies
Travel solutions: Help with cancellation insurance
Health/Employee Benefits News
Life Insurance News