Why Did My Car Insurance Company Raise My Rate?

California Auto Insurance Rates On The Rise
Think you pay too much for car insurance? Your auto insurance premiums probably increased earlier this year. Rates will soon go even higher. Even if you’ve had no recent tickets or accidents, you could see your premium increase.

Car insurance rates tend to increase by 3 or 4 percent each year due to inflation. However, in December 2016, the increase from the previous year was twice that amount, premiums went up an average of 7 percent. Even with a clean driving record, it’s not uncommon for a motorist to pay close to $900 for six months of coverage. If premiums continue to rise at this rate, $1,000 premium payments could be a reality in just a few short years.

Why Are California Auto Insurance Rates Increasing So Much?

Car insurance companies are losing money. In fact, car insurance companies are expected to lose $154 billion this year. In order to remain profitable, they must collect more money by raising premiums.

It’s becoming harder and harder for insurance companies to make money. With profit margins decreasing, many companies are going out of business. This creates less competition, which allows remaining insurers to raise rates even more.

More Cars On California’s Roadways

Insurers are seeing more claims, with the number of accidents rising by almost 4 percent from 2014 to 2015. There are more cars on the roadways than ever before thanks to a low unemployment rate. More cars on the road means more accidents.

New Car Technology Leads To Expensive Repair Bills

The claims are also becoming more expensive as car technology continues to change and innovate. Cars are now equipped with heated mirrors, bluetooth, cameras, entertainment systems, sensors and other costly parts. Many of these items make driving safer, but can result in costly repair bills. Both of these factors have resulted in significant cost increases for insurance companies and the costs are passed on to customers.

Rising Cost Of Healthcare

Not only are car insurance rates rising, but so are medical bills. Between November 2010 and November 2016, healthcare costs rose by more than 32 percent. In the event of a car accident, your auto insurer is the one who would pay the medical bills – not your health insurance company.

With Rising Premiums Comes More Uninsured Motorists

These huge premium rate hikes are likely to lead to more uninsured motorists on California roadways. In California, there are already close to 15 percent of drivers without insurance. As California auto accident lawyers, we continue to see an increasing number of motorists who are uninsured because they simply cannot afford the cost of insurance.

Learn More...

August 24, 2018

Motorcyclist Injured in Crash on Highway 101

San Carlos Accident leads to Hospitalization of Motorcycle Rider...

August 28, 2018

1 Killed, 6 Injured in DUI Crash on I-5

Van-SUV Accident in Elk Grove Leads to Fatality...

September 12, 2018

Keo Malavone Injured in Crash on Olive Avenue

Porterville Accident Involving Patrol Car Causes Critical Injuries...

Do I Have A Case?

We offer free consultation. No office visit required, we will get back to you within 24 hours.

  • This field is for validation purposes and should be left unchanged.


What can we do for you?

  • Answer your legal question.
  • Provide a Free Case Evaluation.
  • Schedule an appointment.


Choose Us?

  • Available 24/7
  • Trusted Since 1990
  • Local to You
  • Recovered $350,000,000
  • 5 Star Reviews
  • Free Case Evaluation
  • VIP Service
  • No Win, No Fee

Latest Law Post

October 15, 2019

Zantac Recalled In All Markets

GlaxoSmithKline said on October 8, 2019 that it was recalling their popular heartburn medication Zantac in all markets as a precaution. This comes mere days after the U.S. Food and Drug Administration (FDA) found “unacceptable” levels of the carcinogen NDMA in the medicine.

October 2, 2019

Hidden FDA Database Concealed Reports of Surgical Stapler Malfunctions

A hidden FDA database of medical device failures was shut down in June 2019. The database contains medical device reports submitted to the FDA via its Alternative Summary Reporting Program from 1999 to 2019. Reports which were sent to this database were not, until recently, made public. The Alternative Summary Reporting Program is a non-public database, unlike the FDA’s MAUDE database which publicly logs medical device failures or defects for public review.


We are Personal Injury Lawyers representing accident victims throughout California.
For 30 years, the law firm of Nadrich & Cohen, LLP has helped injury victims
obtain the compensation they deserve.