Many California drivers can expect a significant increase in their auto insurance rates over the next six months.

“Oh, very surprised. I don’t think I got a notification from my insurance company,” said San Luis Obispo resident Lawrence Pedrosa.

State Fram Insurance said in a statement to KSBY:
“We are constantly monitoring and adapting to trends to ensure we match the price with the risk. As more people are on the road, we are seeing an increase in claims. Auto claim costs are compounded by record inflation and supply chain disruptions. All of this has increased the cost of labor and materials, which means higher costs to repair cars.”

California law requires insurance companies to get state approval for rate increases. Any requested increases above 6.9% require a public hearing.

According to Consumer Watchdog, 20% of the market is already approved for price increases, and many companies are following suit.

The group says it comes as Californians have to pay back money after the pandemic.

“Consumer Watchdog looked at the top 15 companies in California, which cover a significant portion of the California market, and we estimate that Californians were overcharged by at least five and a half billion dollars in 2020, with insurance companies recouping just over two billion of that . . So, as we watch auto insurance rate increases take effect, we’re calling on the Department of Insurance to make sure Californians get covered first,” said Consumer Watchdog Executive Director Carmen Balber.

Drivers are advised to check with insurance companies to find out which one best suits the needs of consumers, especially if their current policy may be renewed.

KSBY reached out to the California Department of Insurance by email and phone for comment on the approval of these price increases, but has not yet heard back.