In a shift to improve profitability in the tough California auto insurance market, overseen by a demanding and controversial department of insurance, insurance carrier Nationwide increased its auto rate 27.6% for nearly 200,000 policyholders effective November 9th.
With only a 2% market share in California, the rate increase will challenge Nationwide’s ability to grow its written premium in the state, as it trails No. 11 Liberty Mutual by more than a point.
Nationwide’s current average policy premium is estimated to be about $1,946 annually, growing to approximately $2,482 for those impacted policyholders—a $537 annual increase.
Current Nationwide customers can take several steps to reduce their auto insurance premium costs, including:
- Shopping around to find the best rates. Quote with several carriers through Auto Quote Tracker to get the best rates and find where coverage can meet your needs.
- Reduce your coverage with Nationwide or other carriers to better fit your profile and save money while protecting yourself through insurance.
- Bundle your policies to save by combining your auto and property policies through one carrier, taking advantage of available discounts.
It took nearly a year for the rate increase to be approved by the California Department of Insurance, after the rate change was filed on November 18, 2022.
Nationwide current written premium in the state is around $324M, expected to grow $124M with the recent increase impacting both new and renewal business.
