Particle.news
Download on the App Store
3 ARTICLES
·
4w ago

State Farm Rate Hike Proposal Awaits Final Decision Following California Hearing

California regulators conclude hearings on State Farm's emergency rate increase request, with a decision expected in late April or early May.

Destruction from the Palisades Fire in the Los Angeles area is seen on Feb. 3. State Farm has sought to raise rates significantly in the wake of the fires, but a final decision is not expected for weeks.
Image

Overview

  • State Farm has proposed emergency rate hikes of 17% for homeowners, 15% for renters and condos, and 38% for rental dwellings to stabilize its finances after wildfire-related losses.
  • The California Department of Insurance provisionally approved the increases to avert potential insolvency, but a final decision awaits further review by an administrative law judge.
  • Consumer advocacy group Consumer Watchdog opposes the hikes, arguing they are not sufficiently justified and could set a harmful precedent for future rate requests.
  • State Farm has pledged $400 million in funding from its parent company and agreed to pause further policy non-renewals through the end of 2025 if the rates are approved.
  • A full evidentiary hearing on State Farm's broader rate requests is scheduled for June, with interim rates potentially taking effect by then if approved.