By Guest commentary Wednesday, May 6th, 2026

By Bill Phillips

It is no secret that California is an expensive place to live. From our high home prices to excessive bills at gas pumps, it is hard to afford to live in the nation’s beautiful “Dream Big” state. 

Rather than quietly allowing bills to soar, Californians should ask lawmakers tough questions about why everyday expenses cost so much. One place to start is auto insurance.  

California’s auto insurance premiums are so high that they made headlines in New York. The New York Post wrote that auto insurance for California residents has increased by 30% since 2022. 

That doesn’t just apply to people with accidents on their record. According to Experian, Californians shell out nearly $3,000 a year for full-coverage auto insurance. 

That means for anyone who has to commute to work, the vast majority of us have to decide between absorbing that cost, buying the absolute minimum coverage, or risking it big time with no coverage. 

If a family has an especially tight budget, they may be forced to choose groceries over auto insurance, but they shouldn’t be put in this position in the first place. Congress must address the biggest driver of insurance increases: lawsuit abuse. 

It is impossible to miss the billboards directing people who have been in an accident to pursue litigation. What is unseen are the criminal fraud rings and opportunistic scammers that are exploiting the justice system. 

In some cases, accidents are deliberately staged so participants can file injury claims and pursue large insurance payouts. 

These schemes often target vehicles believed to carry substantial liability coverage, such as commercial vehicles or cars displaying rideshare decals. 

The financial toll of these staged crashes is enormous. Industry estimates suggest that fraudulent accidents alone cost California insurers between $1.5 billion and $2 billion every year. 

Those losses ultimately ripple outward through the entire insurance market, and the impact is felt by every driver, regardless of whether they’ve been in an accident or are involved in litigation. Californians who opt for rideshares don’t get away scot-free.

Rideshares are required to carry outrageous $1 million liability policies, and those expenses show up in the form of high fares and eat away at earnings for drivers. 

Thankfully, there is something lawmakers can do about it, and it’s already proven to work in other states. 

Some states have begun tightening rules around abusive litigation and fraudulent claims. Florida recently enacted reforms aimed at reducing excessive lawsuits tied to insurance disputes. 

Since then, at least one major insurer has lowered rates, with State Farm announcing a roughly 10% reduction for many drivers, saving families an average of $400 a year. 

Congress has addressed similar challenges before. 

Back in 2005, Congress passed legislation, the Graves Amendment, clarifying that rental car companies should only be held responsible for accidents when they were actually negligent. This common-sense reform helped stabilize liability costs in that industry while still protecting consumers. 

Now that rideshares are ingrained in everyday life, the same reform needs to be extended to Uber, Lyft, and other transportation network companies. 

Updating existing policies to reflect today’s realities could help discourage unnecessary lawsuits while still preserving the right of accident victims to pursue legitimate claims. 

Reforms that promote fairness and accountability can also help reduce the costs that quietly accumulate across the system. 

At a time when families are searching for relief from rising expenses, addressing the hidden drivers behind insurance premiums is a step worth considering. 

A more balanced system would not only protect consumers from — it would help keep everyday transportation affordable for Californians.

Bill Phillips is a retired Arroyo Grande resident concerned about the cost of living on the Central Coast.