Car insurance prices soar post-January storms, say experts
SANTA MARIA, Calif. – Auto insurance prices are increasing. Car insurance companies said this is here on the Central Coast because of the impacts from last month's storm.
Pinky's Insurance in Orcutt said many drivers filed claims of damages that were made by the storm, and they needed their cars to be repaired.
CBS News reports major insurance companies are backing out of the California marketplace. Auto accidents are up, and some insurance companies say they are paying out more than they are taking in. But, the insurance commissioner says the facts don't support their claims.
From 2020 to 2021, auto insurance losses spiked by 25% while premiums increased by only 4.5%, according to the American Property Casualty Insurance Association.
The rate and severity of auto accidents and the costs to cover them are up.
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