Car insurance in California has price caps. And as many of us know from econ 101, price caps lead to shortages.
The California auto insurance market basically failed in December and it is now almost impossible to get auto insurance with less than 3 weeks lead time. Most of them have closed their brick and mortar locations and do not accept online applications.
Of course, California’s solution to a shortage is to try to mandate supply.
quote from commissioner that refused to allow price increases for 4 years:
> “These alleged passive-aggressive tactics by insurance companies to slow down drivers’ access to coverage are unacceptable, dangerous, and will not be tolerated,” Lara said in a press release Thursday.
The California auto insurance market basically failed in December and it is now almost impossible to get auto insurance with less than 3 weeks lead time. Most of them have closed their brick and mortar locations and do not accept online applications.
Of course, California’s solution to a shortage is to try to mandate supply.
quote from commissioner that refused to allow price increases for 4 years:
> “These alleged passive-aggressive tactics by insurance companies to slow down drivers’ access to coverage are unacceptable, dangerous, and will not be tolerated,” Lara said in a press release Thursday.