Insurance Commissioner rejects State Farm's emergency rate hike request, calls for meeting with company reps

California Insurance Commissioner Ricardo Lara has rejected State Farm General’s request for a rate hike averaging 22% due to the company’s “dire” financial situation after the deadly and destructive L.A. County wildfires.

”In the request, State Farm seeks an increase for the following, effective May 1, 2025: 22% for Non-Tenant homeowners, 15% for Tenants (Renters), 15% for Tenants (Condominium Unitowners), and 38% for Rental Dwelling. Under the strict review laid out by Proposition 103, the burden is on State Farm to show why this is needed now. State Farm has not met its burden, as I discuss below,” Lara wrote in a letter released Friday.

In the letter, Lara also requested a meeting later this month with company officials and representatives from Consumer Watchdog, a consumer advocacy group, challenging the request.

Companies need Department of Insurance approval to increase rates for home and auto coverage, a process that can sometimes take more than a year. However, the process could move faster if companies claim price hikes are needed.

https://ktla.com/news/california/insurance-commissioner-rejects-state-farms-emergency-rate-hike-request-calls-for-meeting-with-company-reps/