SAN DIEGO — Car insurance rates are accelerating at a rapid rate here in California.
A new nationwide study finds that by year's end, drivers' rates will increase by more than half compared to last year.
A new report by Insurify, a website that compares insurance rates, finds that car insurance is projected to increase by 22% compared to last year.
But here in the Golden State, that projection is more than double: to a 54% rate hike.
"This is absolutely a surprise," said San Diegan Kayhan Sadr.
"That's your going out money, that's your hobby money, that's taking your kids out to breakfast," he said.
According to this new report, California's projected rate hike would mean, by the end of the year, Californians on average will be paying more than $,2680 annually for their car insurance.
"It's frustrating," he added, "it's offensive almost."
What's driving this increase?
According to Insurify, rising repair costs are putting pressure on insurers, as are car thefts.
California is among the top 10 states with the highest auto theft rates per capita.
This report also points out that, here in California, the state put a freeze on rate increases during the COVID shutdown, leading to drastic rate hikes last year and this year.
"Fifty four percent is a lot!! said San Diegan Katie Antis, who has seen her own car insurance rates go up significantly, after she was in an accident..
While she and her husband work full-time, she said they've decided to forego starting a family because of the rising financial pressures they're facing.
"Here I am, dealing with car insurance, and having to deal with paying for my car versus paying for my groceries, and I don't want my child to have to go through that if I ever came into that situation," she said.
"At the end of the day it kind of all trickles back to the end consumer who unfortunately is going through some tough times right now," said Ben Huggins, who owns Everyday Insurance Services' in Hillcrest.
Earlier this year, he told CBS 8 that to lower your rates, consider raising your deductible, and make sure your company has your most accurate annual mileage.
Also, don't be too quick to dump your current policy.
"You may have a great rate and it went up $300 and it might still be the best out there, so before you cancel it make sure you do some research," Huggins told CBS 8.
Starting next year, you can expect to pay even more. That's when a new state law kicks in increasing California's minimum car insurance requirements, to bring them in line with other states.
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