Are CA automobile insurers obliged to notify customers in advance of a rate increase? If so, are they required to state the reason(s) for an increase?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 15, 2014

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Playa del Rey, CA

Asked on 07/15/2014

Are CA automobile insurers obliged to notify customers in advance of a rate increase? If so, are they required to state the reason(s) for an increase? NULL

Answer given on July 17, 2014

In California, the auto insurance companies need to notify the auto insurance customer if their rates are being increased due to a driving record change. This can include a ticket or accident on the driving record. If you have more than one incident on your driving record then the rates can jump even more since the good driver discount is removed if you have more than one incident in the past three years.If an insurance company takes a general rate increase, across the board, or in certain areas, they do not need to notify you in advance. If you have a good insurance agent, they should advise you of the upcoming rate increase, but many won’t, in fear that you may shop around for less expensive insurance.If you are subject to the general rate increase, you should have time to shop your insurance once you get the premium notice. Most insurance companies issue renewals about 20-30 days before the renewal date which does give you time to shop. Just make sure the increase is not due to a ticket or accident.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and AS IS. It has not necessarily been reviewed by the management staff of nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption