What California’s New, Higher Liability Limits Mean for Auto Premiums | Insurify
The Golden State is more than doubling its mandatory liability limits starting
The new limits take effect in January and will impact new and renewing policies.
How this could affect auto policyholders
State insurance regulators expect the price of car insurance to increase because of the new mandatory limits. But the exact increases remain unknown.
The national monthly averages are
These potential new rate increases mark a blow for consumers in a state where insurance rates were already rising rapidly. Insurify data analysts predicted a 54% increase in
"The increases that have occurred have been largely driven by a continuation of people driving more, resulting in an increasing frequency of claims and inflationary pressures related to vehicle prices and repairs,"
Low-income driver program could spike in popularity because of new requirements
As premiums on standard policies increase, state regulators expect lower-income drivers to search for alternatives.
The CLCA's coverage limits are lower than
CLCA coverage requirements will remain at their current levels.
Here's how the CLCA coverage limits compare to
What's next? Consumers search for affordable options
Since experts expect
For consumers looking for lower rates and better coverage options,
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