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.

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.