OUCH: Car insurance premiums could skyrocket 50% in some states this year.

Naturally, California seems to be getting the worst of it:

Premiums in California are expected to jump 54% this year, to about $2,681 on average.

California froze insurance rates during the COVID-19 pandemic; as a result, some insurers are requesting double-digit hikes as they struggle to return to profitability, while others are leaving the state altogether, according to the report.

“California kept rates frozen for longer than any other state. And during that time, costs were getting more expensive nationally and in the state. Accident rates were increasing. Inflation, particularly for vehicle repairs and maintenance and for new vehicles, kept getting worse. Natural disasters were kind of increasing in frequency,” Gardner said.

As a result, when the price-hike moratorium came to an end, many insurance companies sought “dramatic” increases in an attempt to make up for that lost time, he added.

TANSTAAFL, as the wise man said.