It's unfair and a drag on everyone to have such high rates be the norm, but it's really indicative of deeper problems in society (or at least certain areas) that the insurance company has little to no control over. I moved from a very low crime area with adequate policing to LA, and the difference in insurance premiums is nuts.
Eventually I was the victim of a hit-and-run (not while inside my car, thankfully). A witness gave a description of the vehicle and where it fled to (within a 1 block area). Police report was filed. Crickets. The car was an old shitbox so I only carried liability. Now I'm just without a car. I briefly looked into getting a newer car now that I make a lot more money, but the premiums are just eye watering. I'm lucky to work remote.
I imagine many other law abiding citizens have been through very similar situations here. When one party in an accident is likely to be uninsured, unlicensed, or just allowed flee the scene, it's no wonder that insurance companies have to pass the cost onto everyone else who pays for insurance. To say nothing of other cost inflating phenomena like the increasingly proprietary design and overengineering of cars that are totaled by a fender bender. Insurance companies are businesses and have to remain profitable. I hate it, but this is the system we've built.
> The car was an old shitbox so I only carried liability. Now I'm just without a car. I briefly looked into getting a newer car now that I make a lot more money, but the premiums are just eye watering.
Carrying only liability insurance continues to be cheap even in California. The problem with getting a newer car is that either the lender requires more expensive insurance to protect an asset that they partially own, or most people have emotional attachment to a new car so they don't want to carry just liability insurance. That's why premiums are eye watering. It's difficult for most people to fathom buying a $50k car (about average new car price) and say they don't want to protect it.
> To say nothing of other cost inflating phenomena like the increasingly proprietary design and overengineering of cars that are totaled by a fender bender.
I looked into this and this is actually a trade off between cost to repair and cost to manufacture. Newer car designs like Tesla's "gigacasting" simplify manufacturing because they can use one machine to make one large part, whereas in a conventional car the equivalent might be 100 parts welded together by humans or robots. Even when welded by robots, it is much more time-consuming and lowers throughput in production. Thus, auto makers consciously choose manufacturing techniques to lower the selling price of the car, knowing that they are increasing the price of any repair.
Eventually I was the victim of a hit-and-run (not while inside my car, thankfully). A witness gave a description of the vehicle and where it fled to (within a 1 block area). Police report was filed. Crickets. The car was an old shitbox so I only carried liability. Now I'm just without a car. I briefly looked into getting a newer car now that I make a lot more money, but the premiums are just eye watering. I'm lucky to work remote.
I imagine many other law abiding citizens have been through very similar situations here. When one party in an accident is likely to be uninsured, unlicensed, or just allowed flee the scene, it's no wonder that insurance companies have to pass the cost onto everyone else who pays for insurance. To say nothing of other cost inflating phenomena like the increasingly proprietary design and overengineering of cars that are totaled by a fender bender. Insurance companies are businesses and have to remain profitable. I hate it, but this is the system we've built.