Why is car insurance so expensive in California? Premiums may spike by 50% this year

Already used to paying a premium for life's necessities, Californians may see their car insurance rates go up even more as the year progresses, according to a report by insurance comparison tool, Insurify .

Why is car insurance so expensive in California?

Citing insurer losses due to damage from storms and wildfires in the state and inflationary pressures, including the rising cost of vehicle repairs and new cars, California motorists may see their rates go up by more than 50% in 2024 as insurers struggle to remain profitable.

Insurance rates were frozen during the COVID-19 pandemic and some insurers have requested double-digit increases, while others are exiting the state, according to the report.

In June, the average annual cost of full coverage car insurance in California was $2,417. Insurify data scientists predict that figure to go up to $2,681 by the end of the year.

Who pays the most for car insurance in the United States?

According to the Insurify report, the average annual cost of full coverage is more than $3,000 in six states: Florida, Louisiana, Maryland, Nevada, New York and South Carolina.

In a statement to USA TODAY, Cassie Sheets , data journalist at Insurify and author of the report , said that three of the 10 most expensive states for car insurance have no-fault systems.

"In these states, drivers file claims with their own insurance companies to receive compensation for their injuries, no matter which party caused the accident. No-fault systems are supposed to speed up claims but have also provided opportunities for insurance fraud," Sheets wrote.

New Hampshire drivers pay the least, at an average annual rate of $1,000.

This article originally appeared on Salinas Californian: Why is car insurance so expensive in California? Premiums may spike by 50% this year