California's homeowners insurance crisis is growing and spreading to car insurance 

Came here to find this comment! Hahaah

lmfao 0:54 props to the cameraman for focusing on the real story.☺

Scrolled down to find this comment

Love the family humor

We are in the same boat. Used to pay less than half up until about 5 years ago.

Uninsured drivers are spiraling up the costs. They cause MORE damage and thereby higher rates and higher rates cause more uninsured drivers ... and the circle goes on. Believe it or not, but in most European countries there are almost no uninsured drivers. They have a smart system of automatic flags and enforcement. If they can do it, why can't America do it? It is just a matter of will.

very sorry to hear. Mine went up 15% and I was already screwed up

Same place here too

It jumped 100%. Totally great record. Suddenly double. No good reason at all. Just the way things are nowadays

People just prefer to be emotional and outraged.

That isn't the full story either. Insurance is a gamble by both parties. The insured is gambling they will need the policy. The insurance company is gambling they won't. Both are gambling. Right now insurance companies are taking it in the teeth after decades of being on the correct side of the bet in the US. Well, sometimes the gamble is a loss. California has a law which says they cannot change the terms of the bet without approval. It's not a good law exactly, but it's not a bad law either to regulate the casino. Because I'm in the rest of the US and they've unilaterally changed my policy. For decades insurance companies were some of the highest margin performers in the US. Instead of saving for a year when the outcome of all their gambles could go against them they spent lavishly. They lobbied to have the amount of money they had to keep on hand to cover bad bets to go down so they could spend more lavishly. So now we're in a bad year and they don't have the money to pay out. Well. F them. This is the consequences of getting the laws past at the federal level that they wanted. Pray for rain gotta deal with the mud. They can suck it up for a few years and build savings to cover bad years up to what they should actually have always been. We didn't create this problem. They did. And now we have to bail them out.

Climate change. Insurers are pulling out of Florida and Texas too.

@@halycon404 I like what you wrote, but 2 things to clarify: 1. Insurers have a large nest egg. For example State Farm has $130B 2. Climate change is changing the parameters of the bet. That’s not the insurers fault, that’s the republicans fault, so why should the insurers pay for the republicans stupidity? And for the voters bad choices?

@@halycon404 Actually both parties created the problem. People have continued to build homes in areas that are prone to floods, hurricanes, tornadoes, etc.

A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal portfolio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $350k since then.

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Don't buy new $80,000 pickups, buy something old reliable and cheap. I wish people had the freedom to build very small homes then you wouldn't have to worry (so much) about not having homeowners insurance.

@@bertroost1675 They can. Maybe not in Elysium, but most of the other places in the country. For now. Read about the Cathari and elitism.

@@liberals_destroy_everythin2497 But I'm not talking about them. I am talking about people that work, make money but don't want or have to spend so much on a decent home. No, I am not a leftist.

Move to a better state, like West Virginia. At least you can by food and car insurance there without getting robbed by roving bands of drug zombies.

@@bertroost1675 I agree with not buying $80,000 pickups. But good luck buying "something old, reliable, and cheap"in California. Chances are, 90% of the time, if someone is selling a used car for cheap, there's something seriously wrong with it. If a person had a reliable car, doubtful he'd sell it. I mean, have you ever heard a person say, 'This car is reliable as hell, cheap to maintain, never let me down. I think I'll sell it.'

The problem is the housing market is out of touch of reality. No one makes the amount of money to afford the prices they are charging for housing.

Holy cow. I pay $450 for 6 months. But mine is only liability only, since it is MY CAR. There's no lien on it. I have the title.

aaa did the same for me.. that is not loyalty.. that is business. you policy covers you for a year,, it doesn't cover what you did 30 years before..

That’s not even a traffic accident that would affect your driving record. Absolutely no reason to raise your rate.

Loyalty? Appreciation? Your living in different time. Hope you didn't think a handshake is legally binding

Buddy. Regardless of whatever you believe, these two things are true. One, causing over $1000 worth of damages will go on your record & bump up your rate with all insurance companies. Two, accident forgiveness is not allowed in California. Your new car insurance company charged you for the accident as well.

@@southerncali88You hit somebody else’s car while their car is parked. Why the hell would that not count against you? That’s a traffic accident. You moved into a parked car.

in canada its 500 a month

Yikes! But when the economy is imploding crazy things will be done.

Unless the damage was really severe, I wouldn't have even filled a claim. It's wrong, but insurance companies hold ANY claim against you, even claims that are not your fault.

@@AbcAbc-sp1od My premiums were unchanged. A lot of it has to do with your state's insurance regulations.

You should have said. Wahhhhh poor babies. I paid for something and used it.

They are offloading risk - any risk - to maximize profit. They only want premium payers. Wouldn’t be surprised if they are denying or slow-walking claims.

Everyone will get a taste of it before it's over ....there's lots of folks snickering behind their hands at the coastal insurance woes that won't be so happy in a couple years . Already started with tornado and flood policy coverages , will spread to exclusionary clauses for car insurance in areas deemed " unsafe " due to poor driving habits , crime , cost of living , you name it , the insurance companies will want a " special clause " or exclusion . They work quietly .....lots of sound bites and entertaining , feel good commercials while making the trip to each state capitol prior to the Legislative sessions to try to maneuver changes through the insurance regulations ....with the Holy Grail of Insurance always in view ...which is to be allowed to constantly depreciate an allowable claim to the actual cash value of the repair or loss . Basically wanting to always be allowed to pay about 30 cents on the dollar for a " covered loss " . It's coming

The problem here in Florida is that it originates from crooked lawyers and scam roofing companies. They were going hand-in-hand into litigation against home insurance companies, and companies got tired of being drained over bogus claims. Slowly, our lawmakers are implementing changes.

Insurance is a business and businesses have to make money.

Amazon will step in to solve your problems

Bingo... What people didn't think it's more expensive to insure expensive assets.

@@michaelb4546 I saw my neighbor going on a shopping spree upgrading all their vehicles to big SUVs

That doesn’t even make sense when you’re comparing it to insurance lol

@@jeretsoyou think the insurance didn’t charge them the right price for it?

@@michaelb4546 I’m sure people are paying a bigger price, so why can’t insurance cover? It’s all about profits

They should. That said, California’s legal system allowing people to sue in ways NOT allowed in other states means the liability is MUCH higher. Example: a wreck in Texas that’s IDENTICAL to one in California will cost less than half.

LMFAO I pay 75$ a month full coverage on my 2019 Tacoma. Although I left commiefornia and I’m in the Midwest! Keep voting blue no matter who sucka!

Likely it's because in California you are more likely to damage an EV than in just about any other State. Smack one very hard and it is totaled.

We live in a state not run by The State... a 2021 and 2016 Subaru with $250/500K full coverage. $120/month in full

No. You need to move out of that state. That will fix your problem.

@@saintpreferred9223 if you vote democrat you need to stay and deal with the mess you created

You insinuating another bailout

I don’t know who liking this comment because they clearly didn’t watch the video. It’s ALL on the commissioner’s office. 3 years of doing nothing about rates.

@@justSTUMBLEDupon just 3 years.. has it been that long since the last bailout

easy. you don’t need insurance. just put up a bond with the department of insurance.

Good plan, just put money in a fund to save for possible claims. Insurance is out of control.

@@mtunofun1how do you do that? For home or car?

@@haveaniceday7950 only applies for the car since liability is legally required. Just google how to put up bond for auto insurance liability.

eligibility also includes time you have had insurance. if you bounce around, your rates gonna suck, to combat this, the agency I write for will no longer give you a shot if you havent had at least 12 months of continuous insurance. You also cant lapse for over 30 days and expect any rated company to take you on. Tac on all the other requisites these companies have, and at this point all people qualify for is pronto and amax

In some states, yes. Not in CA.

But if you say that to died in the wool Democrats they will say it’s anybody else’s fault but the Democrats.

And so much more is left to be done.

@@drsrsv8884 the two are polar opposites. Wtf are you talking about ?

Thats what crime does. Its destroys everything. Take oakland for instance. 85 percent of occupants have experienced theft. That level of crime is simply unaffordable to insure. The voters should have know better than to elect pro criminal politicians. This is what happens when masses of people go completely insane and vote to protect criminals drug addicts and illegals.

No. These large premium jumps are mostly being caused by CA, and a select few other DOIs not approving earned rate increases for insurers over the last few years at all, or in a timely manner. Insurers have been running at a loss while waiting for DOI approval. Inflation, logistics issues, etc, have made loss costs skyrocket, forcing carriers to make tough choices (both rate and non-rate). As the DOIs start to work through rate applications, instead of a slow adjustment, which would be normal, policyholders are getting slammed with big jumps. The carriers, for the most part, rushed to the DOIs for rate increases so they could maintain rate adequacy (i.e. not loose money) and have continued to pressure the DOIs to approve rate. This has nothing to do with insurers being greedy and everything to do with commissioners not doing their jobs.

@@PS_____ Thanks for the explanation. I don’t think changing the commissioner is going to change the rate increases now. Prices are getting higher and higher for essentials of a lot of goods and services. Wages isn’t going up either

And they own our politicians… who are elected to protect _us_ in the first place.

To where? Florida?

Not if you own a home you won't.

Must be rich

So simple

@@vuaeco That would be hilariously ironic for the people who actually did that and are now facing $1000 a month homeowner insurance premiums, which will of course be cancelled the next Cat 3 that rolls through.

Do you even know how insurance works? Your not just covering your risk, your covering everyone's risk. Buy liability insurance for your car. Everything else should be self insured by your emergency fund. Don't have a mortgage. The borrower is slave to the lender. I only pay cash for everything I buy. And I am lower middle class. I don't have insurance, and don't need it except for liability insurance on my truck.

@@tira2145 All of thats fine up until an uninsured driver totals your vehicle, then you're SOL.

@@StaYUTI420 Not a problem. It's a 25 year old truck worth 750 dollars. I don't need anything better than that. Very easy to work on.

​@tira2145 Have you seen the used car market lately? There's no such thing as a 750 dollar pre-owned vehicle.

@@serrahighsfinest I buy them all the time. Not from a dealership.

The new cartel.. california fair plan insurance will be thrust on all remaining inhabitants... STATE insurance.

I would say Prop 103 and climate change. Prop 103 wasn't a problem when there wasn't a drastic increase in risk of fire (via drought) and flooding and hurricanes from climate change. Now that those have happened Prop 103 is tying their hands to adjust prices to reflect the new reality of how expensive living in high risk areas is because rates have to be tied to historical trends even though we've pivoted off of the trend line. And the insurance commission which can act to grant large price increases to keep providing insurance viable in CA just aren't acting. Of course, the state can also help by ensuring more homeowners take fire safety precautions and the state takes more wildfire precautions, and that new construction doesn't happen in high risk areas.

Will California ever stop being California? I think the people that live there think that place is sane

xlnt point . If you can't get Homeowners Insurance you can't get a mortgage . if you can't buy/sell your Home , the Market will collapse .

bc there are no cars in Idaho

Unhuh

Where does all their money go? Or am I to believe that investing in insurance stocks is the hidden secret to abnormally large investing success? Also, any of these companies could underbid the greedy companies and take all of the business. Neither of those things are true. I don't think that any abnormal profit taking or conspiracy is happening.

No one believes you.

Are we expected to know where you live?

@@mikemassino Somewhere that isn't run by Democrats. Democrats abhor the constitution because it prevents them from being openly racist.

I left Ny in March 22. Will never move back. No state car inspection. Insurance dipped to reasonable rate per month. Car registration is reasonable too

@@tjts1 When it’s time to sell, who’s gonna buy your Mcmansion when everything now is expensive and a lot of people are losing their jobs and wages are not keeping up with inflation. Also, weather damages on properties are decreasing the marketability of those properties. Increased crimes/violence/drugs also “add insult to injury.” California is also due for a major earthquake soon they say. Who the hell would want to live there? Even when there’s no earthquake nor rain, the earth under some of the houses is moving (latest Cali news say that more houses are being tagged in the Rolling Hills area because of the landslide). How about the huge influx of unwanted illegal immigrants that cross the borders almost everyday that can exhaust California’s Social Services benefits. Another big turn off in Cali are the HUGE TAXES except for real estate property tax because of the property tax control but what you don’t realize is that the state and local government are not stupid so if they lose some on one end, they’ll take it back on the other end that’s why all the other taxes are so high like your income tax, gas taxes, etc. and the cost of living there is so high. How about the HOMELESS people that keep on multiplying because other states are throwing them there. Man, you guys there seem to be having a blast of a party LOL! Wake up! Choose your leaders wisely, PERIOD!

Indeed. Talk about entitlement. It seems these people want to be put back in the safety of the governments womb. People have gotten too freaking soft.

@@bhagmeister complete social engineering. No one wants this and our government does not work for us.

@@bhagmeisterthis is nonsense, the “governments womb?” Lol what?

Democrats running this state will do that!

And remember as the always say "when California does it, the rest of the nation will follow". This nation will be completely destroyed by corporate power and influence if something isnt done to stop it soon.

No.

NO

Why?

Ok

@@sdigf3167 bwahhhhhh ha ha ha ha ha

Insurance doesn't pay for ground movement. Earthquakes are an expensive option, mudslides and mostly not covered. Wildfires are big bucks to insurance companies. The vegetation in CA is designed by nature to burn regularly. 20 to 30 years. Fires have been suppressed for over 100 years. That fuel is building up more every year. People living in fire prone areas need to assume their own risk. People living on the coast need to assume their own risk too. Policy pricing should reflect the risk of the property that's being insured.

This is literally how insurance works - are you daft? We all pay for eachother. “I’m not paying for your hurricanes and tornados”

@@chris8535 To a point, we help pay for each other. Until we pay for the same places over and over again. Every 15 years we are paying for a new beachhouse for Mr. Smith. Tornadoes n it comes to hurricanes, we know they hit certain areas pretty regularly. Houses need to be built better for local conditions. Like having a flammable roof in forest fire areas.

Every other year we see a hurricane in Florida wipe out a sea side city and the replacement cost is spread to all the other insurers the company covers. Sick of paying for someone else's choice to build on the beach or brush covered mountain slope.

That’s awesome

No. Driving w/o insurance is illegal.

Earthquake coverage is not covered in any single home insurance company . You need to add a CEA policy in California if you want that covered.

compared to other locations with Hurricane, Tornadoes, Snow Blizzards ,,,Dude drink coffee and wake up

They won’t. Just don’t vote Democrat if you want to see improvement.

Yep! Predictive models reflect absolute turmoil in near future escalations. 100% facts!

@@user-uo4rf4ez8cwho’s prospective models? Source?

It's disgusting that someone's children think that way about their father. It says a lot about the father's style of parenting.

Jesus Christ! That's insane! How can they even justify that?

That's insane ... My car insurance is $200 a month in CA for two 40k cars and my home is $1000 a month for a 1.5 million dollar home. I feel like the rates are reasonable. I am 37 and have never filed any claims for context.

No one seems to realize all the newer cars are rolling computers that if soaked or banged around are nearly unrepairable. It's no longer just a new panel, little body filler, and some paint.

@@rondye9398 You're correct. The electronics on some of these BEEMERS and ROVERS is absurd and overengineered, appropriate for some Cape Canaveral rocket launch. Plus there's a major shortage of auto mechanics.

@@rondye9398 explain to me why putting insurance on my 1996 Toyota Cresta or 1992 Laurel cost the same amount as my 2017 WRX than, I have them on storage insurance but putting them on the road is expensive and those do not have all the electronics. It’s just Florida has greedy insurance companies. When I was stationed in Kansas I have five cars full coverage for cheaper than my wrx

EXACTLY! These insurance companies are playing hard ball on behalf of their greed! They play being a victim!

Crime and inflation affect profits and the industry needs to adjust to keep profits at an acceptable level .

Almost $3 for a bottle of water!

@@bertroost1675 inflation affects every aspect of industry. Mostly consumed is diesel fuel that is double to triple what it was pre biden. Also electricity insurance security costs have also nearly doubled since biden so there are very good reasons why prices are so high on everything . You havent seen anything yet. Next year you will be talking about when water was only three dollars a bottle and it was available everywhere. If your alive in 20 years your grandkids wont believe you when you tell them food was plentiful and we were all fat .

@@unebonnevieWith all due Respect you have no clue what you are talking about , This time it’s truly not the big bad Corporate greed , the current situation is a major F up

People don't understand how insurance works. 1. You collect enough money to cover a few issues/disaster, not all of your contract holder 2. You do risk analysis 3.Context: Fire, flood, rampant shoplifting, fraud

Also you’re required by law to have insurance for your car and everyone’s mortgage requires homeowner’s insurance. You’re not required to use a plumber every month…

No, that's not it.

The biggest factor is the high price of new and used cars. Then you add fires, jackings, racing, takeovers, drunks and riots. Insurance company goes bankrupt if regulations prevent them from raising prices.

@@jeretso insurance is rarely having to provide the purchase price for a new car compared to how often they end up paying for repairs…

The insurance industry is one of the most regulated industries. The invisible hand is being manipulated by the government.

It's everywhere. Not just California. This is capitalism.

No, that's not it.

New vehicle prices have gone up from $30k to $48k in ten years . That's a 60% increase. Manufacturers discontinued smaller cars to produce bigger SUVs and trucks. Used car shortage led to more high prices. Dealerships markup popular models more than $10k. Then you add riots, street takeovers, car jackings, uninsured motorists and fires. Prices go up.