Mike Netter, Vice Chair of Rebuild California, has expressed concerns over the rising cost of living in California, attributing it to excessive insurance regulations and legal burdens. He made these remarks on his X profile on March 12.
“Everything has gotten more expensive. Rent, groceries, insurance,” said Netter. “California is out of control for every aspect of everyday living. To bring back normalcy we need to break the one party grip.”
According to Insurance Insider U.S., frivolous lawsuits in California have significantly contributed to the increase in insurance costs, particularly in sectors such as commercial auto and general liability. Insurers argue that excessive litigation and legal abuse lead to higher claim payouts and administrative expenses, which are ultimately transferred to consumers through increased premiums. In response, state lawmakers have prioritized tort reform for 2025 to address these issues and improve insurance affordability.
Insurance Newsnet reports that California drivers experienced a 45% year-over-year increase in full-coverage auto insurance premiums in 2024. This rise is attributed to insurers adjusting after the state’s pandemic-era rate freeze. Some insurers have exited the California market entirely, citing strict rate approval processes and mounting financial losses. Additional premium hikes are anticipated in 2025 when new legislation raising minimum liability limits takes effect, further increasing insurers’ financial responsibility.
According to MSP Insurance, third-party litigation funding (TPLF) involves outside investors financing lawsuits in exchange for a portion of any settlement or award. While this practice helps plaintiffs afford legal action, it also contributes to rising insurance premiums by increasing the number and cost of claims, prolonging litigation, and creating greater uncertainty for insurers who then raise rates to offset these heightened risks.
Netter, a former Staples executive now engaged in conservative activism in California, previously led efforts such as the Gavin Newsom recall and mobilized volunteers statewide. A graduate of San Diego State University, he speaks across the state to raise awareness about these issues according to Rebuild California’s website.
