Topline:
The cost of car insurance has jumped more than 19% in the last year, far outpacing overall inflation. There are several reasons why that's happening.
Price rise: On a monthly basis, car insurance prices rose 2.4% between July and August, contributing to a larger than expected jump in core inflation for the month. Inflation was also fueled in August by rising rents and gasoline prices.
Read more ... for a dive into the reasons behind this.
It's not only car prices that are giving drivers sticker shock these days — it's also happening when they open their car insurance bills.
The cost of auto insurance jumped more than 19% during the year ending in August, while overall inflation was 3.7%, according to the Labor Department Wednesday.
On a monthly basis, car insurance prices rose 2.4% between July and August, contributing to a larger than expected jump in core inflation for the month. Inflation was also fueled in August by rising rents and gasoline prices.
Here are four reasons driving the spike in car insurance prices — and what car owners can do to save money.
Insurance premiums actually fell in the early, locked-down stage of the pandemic when many cars sat parked for weeks.
By they time they returned to the roads, however, many drivers seemed to have forgotten how to drive safely.
"People picked up some risky habits," says Sean Kevelighan, CEO of the Insurance Information Institute. "And we haven't seen those risky habits go away, even though we have more people on the road."
The number of fatal auto accidents jumped sharply in late 2020 and early 2021, according to the National Highway Traffic Safety Administration.
While accident rates have since declined, they remain higher than they were before the pandemic, which contributes to the rising cost of insurance.
The cost of repairing or replacing a car that's damaged in an accident have also jumped sharply, thanks to snarled supply chains, parts shortages and a tight labor market that's led to rising wages for auto mechanics.
New and used car prices have begun to fall in recent months, but repair costs are still climbing.
"As much as we're beginning to see month over month decreases in inflation, which is good news, we also have to set in there that we have seen pretty significant price increases overall that have taken place over the last three years," Kevelighan says.
In addition to car crashes, natural disasters — fueled in some cases by climate change — are also contributing to higher insurance premiums, and not just in states prone to hurricanes or wildfires.
"We see a lot of hail damage," says Grace Arnold, who oversees Minnesota's insurance market as the state's Commissioner of Commerce.
Arnold says the costs of weather occurrences can quickly add up.
"We consistently have billion-dollar storms in Minnesota, even if they don't have the 24-hour hurricane watch ahead of them," she adds.
Regulators like Arnold have dual role: trying to keep insurance premiums low enough for drivers to afford them while also keeping insurance companies solvent, so they can keep paying claims.
"We in general have found that the rate increases are justified" she says, by the higher costs that insurance companies are facing.
The Insurance Information Institute says auto insurers paid $1.12 in claims last year for every dollar they collected in premiums. This year, that ratio is expected to be $1.09.
Insurance companies typically count on investment proceeds to cover that shortfall.
"What people really don't understand is that insurance companies make most of their money by investment of our premiums," says Harvey Rosenfield, the founder of Consumer Watchdog in California. "When they run into trouble, they have a scapegoat system set up where they blame something else for the fact that they need to raise their rates because they want to offset their investment losses. That's how the industry works."
Most states require drivers to carry auto insurance, but there are ways for drivers to lower their costs.
"The very first thing you've got to do is shop around," Rosenfield says. "There are often better deals to be had."
Many companies offer a discount for drivers who bundle their auto and home insurance, as TV commercials seem to tout all the time.
Others will lower the premium for drivers who agree to install an app on their phone, allowing the company to track their driving habits.
Opting for a higher deductible can lead to lower premiums, though Arnold cautions against gambling with too little insurance.
"I find it helpful to think through a couple of examples," she says. "If I had my car stolen, what would that mean for me? If I were in an accident, what would that mean? The last thing you want is to be surprised."
Arnold says her office gets some complaints about the jump in auto insurance premiums. But more often she hears from people who are unhappy with what they see as a skimpy payout when they file a claim.
Copyright 2024 NPR. To see more, visit npr.org.
Topline:
Write-in candidates in Southern California are no joke. Election officials require them to qualify. While many are already in, Tuesday is the deadline to be considered. The full list will be released to the public Friday.
The rules: The city of L.A. requires write-in candidates to file a form and pay $300 or submit 500 valid signatures, while other cities may not require anything except paperwork. Qualified candidate names are sent to county election officials and will post the information Friday for voters.
Some write-in candidates: As of 3 p.m. Tuesday, the L.A. County Registrar of Voters listed 20 write-in candidates who filed in California for a wide range of races, from state Assembly and state Senate to governor. Of the 20, 11 filed as write-ins for the governor’s race.
Why it matters: Most write-in campaigns are a long shot but some have won: Lisa Murkowski won an Alaska U.S. Senate seat in 2010; Washington, D.C., Mayor Anthony Williams was reelected in 2002.
Who gets counted: Only votes for qualified write-in candidates are counted and certified. Sorry, Mickey Mouse and George Washington.
What's next: Here’s the current list of qualified write-in candidates in L.A. County. Checking the box that says Show only Write In Records will show you write-in candidates. Orange County election officials say they have no write-in candidates.
Go deeper: Your LAist voter guide for the 2026 June elections.
Topline:
Several fires are burning across Southern California, with some destroying structures, threatening homes and charring pristine landscapes.
Where are the fires? A large fire is burning on Santa Rosa Island in Channel Islands National Park. A fire in Simi Valley has destroyed one home and led to multiple evacuation alerts. Two fires are in Riverside County, and a small fire is in the San Gabriel Mountains.
The forecast: Warm weather and Santa Ana wind conditions have hampered firefighting efforts and are expected to continue through Wednesday this week.
Read on ... for details about the Sandy Fire, Santa Rosa Island Fire and others.
Several fires are burning across Southern California, with some destroying structures, threatening homes and charring pristine landscapes.
Warm weather and Santa Ana wind conditions have hampered firefighting efforts and are expected to continue through Wednesday this week. The National Weather Service forecasts cooler weather and "May gray" through the weekend.
Here's a roundup of some of the fires burning now.
(All dates refer to today, Tuesday, May 19, unless otherwise noted)
The fire is burning in Channel Island National Park territory. Firefighters traveled by boat with their equipment to get to the island, according to news reports. The island is home to rare and endangered plants and animals.
CalFire reported about 2:40 p.m. Tuesday that lessening winds allowed "firefighters to take full advantage of improved weather to strengthen containment lines and continue aggressive suppression efforts. Crews remain actively engaged both on the ground and in the air to gain additional containment and keep the fire within its current perimeter."
The fire started Monday in the southern part of Simi Valley. It eventually spread eastward toward L.A. County communities in the San Fernando Valley, but overnight conditions were favorable to firefighters, CalFire said. Several communities were under evacuation orders and warnings, and schools in the area were closed.
The fire was first reported around noon Tuesday, according to CalFire, near Jurupa Valley (east of the 15 Freeway and south of the 60). CBS News Los Angeles reported that four people have been injured.
The fire started Monday in a mountainous area north of the San Gabriel Reservoir.
Check out LAist's wildfire recovery guide.
Prepare for the next disaster:
If you have to evacuate:
Navigating fire conditions:
How to help yourself and others:
How to start the recovery process:
What to do for your kids:
Topline:
Citing a desire to prevent corruption within county government, the Board of Supervisors on Tuesday established Los Angeles County’s first ethics commission.
The backstory: In 2024, voters approved Measure G, which called for the creation of an Ethics Commission and Office of Ethics Compliance. The measure came amid a series of corruption cases at L.A. City Hall but calls for reform spilled over into the county government.
The details: The motion by Supervisor Lindsey Horvath and approved by the board Tuesday directs county departments to begin establishing the operational, staffing and legal infrastructure necessary to launch the commission in this year. It also directs staff to prepare a charter amendment for voter consideration on the November ballot to enshrine the commission in the charter.
Composition: Supervisors voted for a plan that calls for a seven-member commission. Initially, the chair of the Board of Supervisors, the county assessor and the Governance Reform Task Force would each appoint a commissioner, filling three spots. Those appointees would then select the remaining four members from a pool of applicants.
Opposition: Supervisor Janice Hahn supported the overall motion but opposed the composition of the commission, saying too many members were to be appointed by elected officials — the same people the panel would be charged with watchdogging.
History: The county has had its own campaign, lobbying and ethics laws on the books for years, but they were enforced by ethics officers in various departments. The latest proposal calls for a 54-member ethics office to enforce those laws and for the commission to impose fines if they are violated.
Topline:
After a spike in fraudulent applications to California’s community colleges, school officials say they are getting better at detecting and preventing fraud, though it still happens.
Why it matters: Between January and March 2025, scammers stole nearly $5.6 million in federal student aid and over $900,000 in state aid. By comparison, this spring colleges have reported losing just under $1.5 million in federal student aid and about $330,000 in state aid to fraudsters. Last spring was “really the peak,” Hadsell said. He said he anticipates the end-of-year total in 2026 to be “significantly lower” than last year.
The backstory: Last spring, CalMatters reported that colleges were seeing unprecedented reports of fraud, with scammers stealing millions more dollars of student aid than in any previous period, according to reports submitted by colleges to California’s Community Colleges Chancellor’s Office.
Read on... for more on how community colleges in the state are cracking down on financial aid fraud.
This story was originally published by CalMatters. Sign up for their newsletters.
California’s community colleges have been battling fraudulent students for years, trying to prevent scammers from stealing financial aid money.
Recent data shows the colleges’ efforts finally may be working.
Last spring, CalMatters reported that colleges were seeing unprecedented reports of fraud, with scammers stealing millions more dollars of student aid than in any previous period, according to reports submitted by colleges to California’s Community Colleges Chancellor’s Office.
Now fewer scammers are bypassing colleges’ vetting systems, according to monthly reports, and school administrators say they’re better, though still not perfect, at detecting and preventing fraud.
After CalMatters reported on the rise in fraud last year, Republican U.S. Congress members called for a federal investigation, a Democratic state legislator launched a state audit and later, California’s Community Colleges Chancellor’s Office approved a new ID verification policy for students. Colleges now are more vigilant about policing fraud, said Jory Hadsell, an executive in technology initiatives for the chancellor’s office, who pointed to better filtering practices and new software to detect fraud.
Between January and March 2025, scammers stole nearly $5.6 million in federal student aid and over $900,000 in state aid. By comparison, this spring colleges have reported losing just under $1.5 million in federal student aid and about $330,000 in state aid to fraudsters.
Last spring was “really the peak,” Hadsell said. He said he anticipates the end-of-year total in 2026 to be “significantly lower” than last year.
Even in the worst months, such as last spring, the money distributed to scammers is less than 1% of the total financial aid distributed to community college students in California. Students use the money to help pay for tuition, books and the cost of daily living expenses, such as rent, transportation and food.
But any fraud, however small, is unacceptable, said Chris Ferguson, executive vice chancellor of finance and strategic initiatives. “The ultimate goal for our system is zero.”
Some anti-fraud policies have been slow to take effect. The California Community Colleges Board of Governors voted nearly a year ago to require ID verification for all students, but only about 50% of college students are doing it as of this month. Hadsell said the delays arose in part because of complications verifying information of students under 18 years old, who represent a growing demographic for the community colleges. He said ID verification, which is currently optional, will become mandatory on July 1.
The board also voted to “explore” the option of charging students an application fee of no more than $10, but with the rates of fraud declining and other solutions that seem to work, the chancellor’s office is no longer pursuing that option, Ferguson said.
After blaming California officials, the U.S. Department of Education, which shares responsibility for administering federal aid and detecting fraud, said it would implement a “screening process” for applicants. It was supposed to take effect last fall but didn’t launch until last month, according to press releases from the department and statements from the California Student Aid Commission. CalMatters reached out to the U.S. Education Department five times over the last 12 months, seeking clarification, but the department has refused to respond to questions about delays with the screening process.
After classes suddenly moved online during the COVID-19 pandemic, the California Community Colleges Chancellor’s Office saw an increase in financial aid fraud on their application portal, CCCApply, which is used by nearly every student as the first step in applying to community college.
In 2021, the chancellor’s office suspected roughly 20% of applicants were fraudulent.
The estimate was higher in January 2024, around 25%. Last spring, it was 34%, though some schools saw much higher rates.
After they apply through CCCApply, students get filtered locally at their college of choice. In the Los Rios Community College District, which represents Sacramento, college officials suspected 64% of local applications from January to March 2025 were fraudulent. And that was after the state already vetted them through its portal, said Gabe Ross, a spokesperson for the district. The San Diego and Los Angeles community college districts also reported spikes in the number of fraudulent applications around the same time.
CalMatters reached out to the five largest community college districts for an interview. The Rancho Santiago Community College District, which includes parts of Orange County, did not provide sufficient data to draw conclusions about trends in fraud. The State Center Community College District, which represents schools in Fresno and Madera counties, did not respond to CalMatters’ questions.
Monthly data reports to the chancellor’s office show that once detected, most scammers who applied to community colleges were then caught and kicked out before they could apply for financial aid, but some succeeded.
This year, both Sacramento and San Diego community colleges say they’re seeing fewer attempts at fraud and are getting better at stopping those who try. The San Diego Community College District is now manually screening for fraudulent applications twice a week and is finalizing a contract with a company to help improve its detection software.
CCCApply has improved its filtering process, which helped reduce fraud attempts at Sacramento area colleges, said Ross. “When we talked about such a complex dynamic challenge, it's always hard to identify what's the one thing that sort of moved the needle. The truth is that we needed support from the feds, we needed support from the (chancellor’s) office, and we needed to invest in tools locally.”
This spring, he said the district flagged about 12% of college applications as suspect.
Measuring fraud is, by definition, imprecise. If a scammer is truly successful, colleges have no way to identify that fraud.
For a long time, administrators assumed bots enrolling in online classes were responsible for most fraudulent attempts. Yet teachers, students and financial aid administrators say some of the scams are more sophisticated now and are coming from real people impersonating students. Many fraudulent applications to Los Angeles’ community colleges have real names, dates of birth, and addresses that are likely “leaked or stolen,” said Nicole Albo-Lopez, the deputy chancellor of the Los Angeles Community College District.
In San Diego, Victor DeVore, dean of student services, said the college district only requires ID verification for students flagged as fraudulent. At that point they must prove their identity, either in person or through Zoom. Once, a potentially fraudulent student appeared on Zoom and presented a valid-looking ID that matched their face, but DeVore’s team noticed that the student’s IP address was odd. “One minute they’re logging in from Nairobi, the next minute they'll be logging in from Virginia,” he said, adding that the use of AI, virtual private networks (VPNs) or other technology has made fraud harder to detect.
Students’ personal data is supposed to be private, but school districts and education technology companies are frequently hacked. Last week, Canvas — one of the go-to learning platforms for California’s community colleges, University of California and California State University campuses — went offline temporarily due to a major hack. Its parent company, Instructure, said last week that it reached an agreement with the hackers to relinquish students’ data.
The state has turned to AI to fight fraud. Last summer, the state chancellor’s office negotiated a multimillion dollar contract with N2N Services Inc., enabling any college in the state to access the company’s software at a discounted rate. The software uses AI to detect potentially fraudulent applicants. Colleges are not required to use it, and so far, only about two-thirds do. Some districts, such as the Los Angeles Community College District, use a different fraud detection software, known as Socure.
Colleges and the state chancellor’s office continue to face political pressure and scrutiny of their approach to fraud. Last month, the U.S. Education Department said it had prevented more than $171 million in fraud in California after implementing a new policy regarding ID verification. Hadsell, with the state chancellor’s office, said the federal policy had no impact on California’s colleges. “They issued some interim guidance last year that basically said you should at least have a Zoom call with students and have them show an ID when you're approving their aid. And those were things that were already happening. It was not, you know, some new thing at least for most of our colleges.”
Kiran Kodithala, the CEO of N2N, which collects its own data on fraud at community colleges, said the education department’s claim makes no sense.
“I don’t see how $171 million in fraud in California can occur,” he said. “There’s no basis for those numbers. We’re not seeing anything remotely close.” Kodithala estimates that N2N has prevented over $34 million in fraud since last summer, though his platform is not yet in use by all of California's 116 community colleges.
Collecting more precise data may take months or years. U.S. Representative Young Kim, who represents parts of Orange, Riverside and San Bernardino counties, launched the effort for a federal investigation last spring, but her office could not provide any updates or confirm that an investigation was in fact underway. At the state level, the Legislature last year approved conducting an audit of how California’s community colleges handled fraud but the findings won’t be released until this summer.
This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.
