California auto insurance crisis?

[alanzyy]

Yesterday my friend bought their first car and I was helping on getting insurance. To my surprise, all insurance (Geico, Progressive, Allstate, Statefarm) all says either need wait 15 days for insurance approval, or not showing a quote at all.

I was really surprised as I thought auto insurance is always something you can buy when doing dealership paperwork and 5 minutes later you are covered and good to go.

It seems there is a sh*tshow happening between insurance companies and state insurance regulator. Many insurance company are not either taking new customer or make it really hard to buy one. Geico closed all physical offices in the state; Costco exited insurance referring business all together in CA; multiple insurance agency stopped advertising in CA...

What a brave new world. For many first time buyers, you now have to wait 2 weeks before being able to get insurance before driving it off the lot.

[Sedoy]

Probably because he is trying to insure non-electric vehicle...

Originally Posted by alanzyy

Yesterday my friend bought their first car and I was helping on getting insurance. To my surprise, all insurance (Geico, Progressive, Allstate, Statefarm) all says either need wait 15 days for insurance approval, or not showing a quote at all.

I was really surprised as I thought auto insurance is always something you can buy when doing dealership paperwork and 5 minutes later you are covered and good to go.

It seems there is a sh*tshow happening between insurance companies and state insurance regulator. Many insurance company are not either taking new customer or make it really hard to buy one. Geico closed all physical offices in the state; Costco exited insurance referring business all together in CA; multiple insurance agency stopped advertising in CA...

What a brave new world. For many first time buyers, you now have to wait 2 weeks before being able to get insurance before driving it off the lot.

[07ImolaRot]

Originally Posted by alanzyy

Yesterday my friend bought their first car and I was helping on getting insurance. To my surprise, all insurance (Geico, Progressive, Allstate, Statefarm) all says either need wait 15 days for insurance approval, or not showing a quote at all.

I was really surprised as I thought auto insurance is always something you can buy when doing dealership paperwork and 5 minutes later you are covered and good to go.

It seems there is a sh*tshow happening between insurance companies and state insurance regulator. Many insurance company are not either taking new customer or make it really hard to buy one. Geico closed all physical offices in the state; Costco exited insurance referring business all together in CA; multiple insurance agency stopped advertising in CA...

What a brave new world. For many first time buyers, you now have to wait 2 weeks before being able to get insurance before driving it off the lot.

sounds like there is a red flag on their end and thus need more processing time.... all these insurance companies are linked and have the same information on applicant

[SoCal_NSX]

Originally Posted by alanzyy

Yesterday my friend bought their first car and I was helping on getting insurance. To my surprise, all insurance (Geico, Progressive, Allstate, Statefarm) all says either need wait 15 days for insurance approval, or not showing a quote at all.

I was really surprised as I thought auto insurance is always something you can buy when doing dealership paperwork and 5 minutes later you are covered and good to go.

It seems there is a sh*tshow happening between insurance companies and state insurance regulator. Many insurance company are not either taking new customer or make it really hard to buy one. Geico closed all physical offices in the state; Costco exited insurance referring business all together in CA; multiple insurance agency stopped advertising in CA...

What a brave new world. For many first time buyers, you now have to wait 2 weeks before being able to get insurance before driving it off the lot.

sounds like an issue with your friend and not some sort of crisis

I have insurance through Costco so I don't know where you are hearing all of this?

Most people could call any of the major carriers right now and get an instant quote for any car and be insured in minutes

[alanzyy]

Originally Posted by SoCal_NSX

sounds like an issue with your friend and not some sort of crisis

I have insurance through Costco so I don't know where you are hearing all of this?

Most people could call any of the major carriers right now and get an instant quote for any car and be insured in minutes

Costco - https://www.connectbyamfam.com/costc...ostco-members/

Important Information for California Costco Members
New auto and home insurance policies are currently not available in California through the Costco Insurance Agency, Inc.
The Costco Insurance Agency, Inc., is currently not offering new auto or home insurance policies in California. Please check with other agencies and carriers serving California or ask friends and family for recommendations.

This change does not affect members who currently have an active California insurance policy through this program.

We apologize for any inconvenience.

[Marcoose]

More details would be great. In the meantime I too am guessing the problem is with OP’s friend.

[alanzyy]

Originally Posted by 07ImolaRot

sounds like there is a red flag on their end and thus need more processing time.... all these insurance companies are linked and have the same information on applicant

I see a discussion on reddit here - apparently quite a few people experience sth similar this year.

https://www.reddit.com/r/Geico/comme...ct_just_me_or/

https://www.reddit.com/r/motorcycles...ew_california/

re: Geico closing office in CA -

https://ehlinelaw.com/blog/geico-shu...-in-california

[alanzyy]

Originally Posted by Marcoose

More details would be great. In the meantime I too am guessing the problem is with OP’s friend.

Work visa; got license a few months ago; in-state license and address with full time professional job (engineer); have credit history/credit card; first car purchase (new car, Japanese brand, paid cash)

Looks like from various online source, policy renewal is not problematic; however companies seems to intentionally make it hard to buy new / first-time policy

[alanzyy]

State farm - https://www.statefarm.com/insurance/auto

As soon as you put any CA (or at least bay area zip code) you get this message. You don't even get a chance to input any personal or vehicle detail

We're sorry for the inconvenience
Thank you for your interest in State Farm®. We don't currently offer online quotes for this product in your state or province.

Please reach out to your local agent for a personalized quote.

Return to previous page

Do Not Sell or Share My Personal Information (CA residents only)

[alanzyy]

Originally Posted by Sedoy

Probably because he is trying to insure non-electric vehicle...

LOL waiting for the day BMW offer its own policy like some T- brand does

[alanzyy]

Originally Posted by 07ImolaRot

sounds like there is a red flag on their end and thus need more processing time.... all these insurance companies are linked and have the same information on applicant

For geico and progressive that ask for 15 days before underwriting for a specific applicant - it is a possible explanation (after enters information for applicant and vehicle, quote is generated but system prompt additional process warning).

For Costco and Statefarm - they just ask for the zip code and blocks the whole California before even ask for your personal detail - this seems alarming.

[spiceyxi]

I ran into this when I was going to get some new quotes to see if any cheaper options were available. AAA seems to be available to quote online, but not many others. This seems to be driven by a number of requested rate increases being refused by the state.

https://www.cbsnews.com/losangeles/n...of-california/

It seems like getting insurance for your house will be the next difficulty.

https://www.cnn.com/2023/05/28/busin...ire/index.html

[RM7]

Originally Posted by alanzyy

I see a discussion on reddit here - apparently quite a few people experience sth similar this year.

https://www.reddit.com/r/Geico/comme...ct_just_me_or/

https://www.reddit.com/r/motorcycles...ew_california/

re: Geico closing office in CA -

https://ehlinelaw.com/blog/geico-shu...-in-california

Do people ever actually go to physical insurance offices? I'm 45 and have never been.

[c1pher]

Originally Posted by RM7

Do people ever actually go to physical insurance offices? I'm 45 and have never been.

I have never visited an insurance office in my entire adult life. I haven’t had many claims, just one home owner claim and two car claims where I was hit, so wasn’t my fault.

[c1pher]

I think insurance companies are cutting their losses in certain areas. I know USAA won’t always provide home owners or flood insurance and I read that some insurance companies are pulling out of Florida due to high risk. Could something similar be happening in California? I know California loves its regulations so maybe there are new regulations that these companies don’t want to abide by? I don’t know, just guessing.

[gonzo]

Originally Posted by c1pher

I think insurance companies are cutting their losses in certain areas. I know USAA won’t always provide home owners or flood insurance and I read that some insurance companies are pulling out of Florida due to high risk. Could something similar be happening in California? I know California loves its regulations so maybe there are new regulations that these companies don’t want to abide by? I don’t know, just guessing.

Ding Ding Ding

"Rapidly growing catastrophe exposure," including wildfires, earthquakes and landslides, forced State Farm to stop offering home and property insurance in California, further shrinking the availability for homeowners to protect their homes.

[jkoral]

Originally Posted by gonzo

Ding Ding Ding

"Rapidly growing catastrophe exposure," including wildfires, earthquakes and landslides, forced State Farm to stop offering home and property insurance in California, further shrinking the availability for homeowners to protect their homes.

Right, the State Farm change was all over the news in the last 24-48 hours (and I live on the east coast).

Saw in WSJ that insurers are fleeing CA because regulators won't let companies charge for the growing risks and State Farm was just the latest.

[SoCal_NSX]

Originally Posted by jkoral

Right, the State Farm change was all over the news in the last 24-48 hours (and I live on the east coast).

Saw in WSJ that insurers are fleeing CA because regulators won't let companies charge for the growing risks and State Farm was just the latest.

exactly....basically insurance companies are blaming anything and everythiing but the real reason is becuse they can't just jack up the rates when ever they feel like it for more profit in California without approval...so theyre taking their ball and going home.


https://www.cbsnews.com/losangeles/n...of-california/

[Efthreeoh]

Business walking away from profits... right.

[SoCal_NSX]

Originally Posted by Efthreeoh

Business walking away from profits... right.

it's just not enough profit

A spokesperson for the Insurance Commisioner says "while insurance companies are focused on increasing rates, the department of insurance is focused on protecting drivers and helping them get the most value from the premiums they pay."

His office points out that the commissioner saved Californians $2.4 billion in reduced premiums during the height of the covid stay at home order- when the industry still raked in a collective of $42 billion in excess premiums.

Insurers cannot refuse to cover Californians as we are what's called a "take all market," but agents say they are having to go with smaller, lesser known carriers if clients need insurance quickly


rental car prices and auto body prices sky rocketed during the pandemic taking advantage of the "supply chain" excuses and the insurance companies had to eat it ...they still make profits, just not as much as they used to and they don't like the fact that California is a consumer friendly state when it comes to insurance premiums and rate increases

[Pheonix]

Well, thanks goodness for CA Politicians and their politically connected appointees fighting for us consumers or we would be forced to take public transportation here in California (oh wait, never mind).

https://www.forbes.com/advisor/car-i...es-to-own-car/

In all seriousness, lack of competitions will drive up the costs!

[SoCal_NSX]

Originally Posted by Pheonix

Well, thanks goodness for CA Politicians and their politically connected appointees fighting for us consumers or we would be forced to take public transportation here in California (oh wait, never mind).

https://www.forbes.com/advisor/car-i...es-to-own-car/

In all seriousness, lack of competitions will drive up the costs!

we don't do public transportation in California....we like our cars.

it's the gas prices and auto repair prices in Cali that make it expensive, not the insurance, but if the insurance companies could get away with the higher premiums they would, you know that for a fact

man, Florida gets it in the shorts on insurance premiums according to that list