DMV’s Open Door Policy

California The Two-Year Trajectory: Following massive double-digit rate increases across 2023 and 2024 (where top insurers implemented cumulative jumps exceeding 30% to 40% overall), rates continued to edge upward into 2026 by another moderate margin. All told, drivers renewing policies over the last 24 months have often faced cumulative rate shocks of 30% to over 40% depending on their exact carrier and history.

Arizona The Two-Year Trajectory: Full-coverage annual insurance rates in Arizona pushed past the $2,000 threshold on average during the peak inflationary windows of 2024. While the frantic double-digit rate hikes of previous years have largely cooled down to minor single-digit adjustments or stabilization phases, drivers are still paying roughly 20% to 25% more overall than they did at the start of the decade.

Sure, there are many factors causing these rate increases. But, one little known factor affecting California and Arizona motorist is what this article is about.

DMV’s Open Door Policy

Why CA and AZ Drivers Pay for the DMV’s Open Door

For years, we’ve been told that auto insurance is “mandatory.” But if you’ve been to a DMV in California or an MVD in Arizona lately, you know the truth: It is mandatory on paper, but optional at the counter.

As someone who has spent over 30 years in residential real estate and insurance brokerage across both coasts, I have seen how a functional system operates—and I am currently watching a systemic failure in the West that is costing you thousands of dollars and compromising your safety.
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