This is Newsoms’ revenge on the people of California. We elected him and now, via higher taxes, higher water and energy, housing and food cost, he wants us to live in poverty. Add to this his efforts to raise the cost of auto insurance (at a time home insurance has skyrocketed and in many places unavailable)
“For Californians finding it difficult to secure affordable auto insurance, know that drivers still have options. There are more than 130 companies that offer auto insurance in the state and save for a couple of exceptions, auto insurers are not leaving California.
The same cannot be said, however, for fire insurance. Citing increased wildfire risks, some of the biggest home insurers have pulled out of California. This has led to soaring premiums and Gov. Gavin Newsom issuing an executive order in September directing the insurance commissioner to try to solve the problem.
For more on why car insurance is getting harder to secure in California, read Levi’s story.
Remember this when you vote next November. You can thank the Democrats for killing the economy.
California’s cost of living rises with auto insurance, rent
BY LYNN LA, CalMatters, 12/11/23 https://calmatters.org/newsletter/california-cost-of-living/
For Californians, it’s not just finding affordable home insurance that’s a problem. Many motorists are having trouble getting auto insurance, citing delays in getting coverage and higher-than-usual premiums.
As CalMatters economy reporter Levi Sumagaysay explains, the predicament is the result of inflation and state regulations. The latter has helped consumers save billions but insurers call the rules cumbersome.
With 27 million licensed drivers in 2021, California has the most drivers of any state. And to do business here, insurers have to abide by state rules. That includes Proposition 103, which requires hearings for any personal insurance rate increase requests above 7% if a member of the public challenges it. Though these hearings are rare, the risk of one means that rate increase requests don’t typically go above 7%.
For one attorney Levi spoke to who represents insurance companies, Prop. 103 has also made California the “worst market.”
But since 2002, Prop. 103 and other state rules have helped save drivers $2.5 billion, according to calculations by the advocacy group Consumer Watchdog, which has challenged rate increases. And from 1989 to 2015, a study published in 2019 found that Californians saw the smallest rate increases (12.5%), compared with a national average (61%). More recently, California premiums increased 9.7% from 2018 as of August of this year, putting the state in the middle of the pack compared to other states’ increases.
For Californians finding it difficult to secure affordable auto insurance, know that drivers still have options. There are more than 130 companies that offer auto insurance in the state and save for a couple of exceptions, auto insurers are not leaving California.
The same cannot be said, however, for fire insurance. Citing increased wildfire risks, some of the biggest home insurers have pulled out of California. This has led to soaring premiums and Gov. Gavin Newsom issuing an executive order in September directing the insurance commissioner to try to solve the problem.
For more on why car insurance is getting harder to secure in California, read Levi’s story.
Speaking of California’s cost of living: CalMatters’ Jeanne Kuang reports that even the lowest-income tenants are being hit by rent increases. That’s because California has more than 350,000 privately owned low-income housing units that are exempted from the state’s rent cap, which lawmakers passed four years ago.
For the past two years, tenants living in low-income housing have experienced particularly high rent hikes due to inflation, rising insurance costs and the lack of rent payments during the pandemic. Affordable housing landlords and nonprofit developers argue that they need to raise rents to cover operating costs and repairs.
In response, some advocates are pushing for state and local laws to cap rent increases on these units. Nine other states have rent caps on certain low-income housing, but California isn’t one of them.
Landlords say a blanket cap would make it hard for them to keep their properties afloat and remove flexibility since landlords already work with tenants to try to keep rents low. Federal regulations also complicate the picture. But as one tenant whose rent increased by 40% put it to Jeanne: “How are you supposed to live in affordable housing, but it’s not affordable?”
For more on California’s rent hikes for low-income housing, read Jeanne’s story.
