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The NYT has a great podcast on this[1] -- insurers are refusing to insure geographic areas that are seeing a spike in weather like this. Not sure if this applies to car insurance, but home insurance is definitely changing.

1: https://www.nytimes.com/2024/05/15/podcasts/the-daily/climat...

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I didn't listen to the audio, but I know many insurers are pulling out of California. However, I think for CA, the bigger issues construction costs and regulations on how much they can charge.

The fires were definitely a huge loss, but there is a reason they can't just raise their rates to cover the risk

Insurance companies in California by law cannot use future predictions to set rates today. If they think there is a higher risk of fire losses in the future there's nothing they can do about it.

>If they think there is a higher risk of fire losses in the future there's nothing they can do about it.

They can stop issuing new insurance policies if they think they will be unprofitable. I also know a few people who have had their policy "accidentally" cancelled, and then they can not get a new one with that company.

https://www.marketplace.org/2024/05/28/are-we-in-the-midst-o...

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