An August 10, 2026 Insurance Business read of second-quarter earnings split the California auto market in two. Mercury General, which writes more of its book in this state than any other public insurer, posted an 89.9% combined ratio, down from 92.5% a year earlier. Kemper’s specialty auto loss and LAE ratio went the other way, to 83.8% from 72.5%, with California severity and frequency called out.
The Insurance Research Council’s closed-claim study found California bodily-injury and PIP claim costs up 18% in 2025, versus 11% nationwide. Average BI payment per insured vehicle: $9,840, up from $8,340. Top-10 insurers had taken about 6% in 2025 after 15.4% in 2024 and 13% in 2023. Collectively, carriers covering about 85% of California auto had raised rates more than a third since 2023. State Farm had filed a 6.2% decrease. Geico was holding flat.
If your auto renewal is still climbing, it may be the BI trend, not your driving. Requote preferred and standard markets before you accept a specialty price.
If this is on your renewal, call the office at (619) 420-8600 or start a quote. We will tell you what the market will actually write.
Sources: Insurance Business, August 10, 2026; Beinsure on California auto since 2023.