News: State Farm Requests Additional 39% Rate Hike Impacting 430,000 Californians
FOR IMMEDIATE RELEASE
April 1, 2025
Contact: contact@insurancefairnessproject.com
News: State Farm Requests Additional 39% Rate Hike Impacting 430,000 Californians
Yesterday, State Farm requested a 39% rate hike for 430,000 Californians. As the San Francisco Chronicle reported:
“If approved, the requested hike would take effect starting in August and become the second major hike for the umbrella liability program in six months. California regulators approved an earlier 29% rate increase which is impacting customers at their first renewal date following March 1.”
This increase for umbrella policyholders is entirely separate from State Farm’s requested “emergency” 22% rate hike for homeowners that will likely lead to California State Farm policyholders paying $841 more on average for homeowners insurance. The fate of that rate increase will be determined at an April 8th hearing, following Insurance Commissioner Ricardo Lara’s provisional green light.
If approved, that 22% rate hike would amount to an additional $841 cost for the average policyholder, according to a new in-depth analysis by the Center for Climate Integrity, which further breaks down the data by zip code and legislative districts. Meanwhile, as Consumer Watchdog notes, State Farm’s parent company has $194 billion in surplus and reserves.
“Homeowners and renters are being left in the lurch by insurance companies, while government leaders are not doing enough to step in and fix the crisis,” said Sophia Wilson, spokesperson for the Insurance Fairness Project. “As one of the states hardest hit by the insurance crisis, California is now at a crossroads: allow insurers to offload climate risk onto people or ensure that Californians don't pay more than they already are. Enough is enough.”
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
