California Insurance Commissioner Ricardo Lara published a letter responding to State Farm’s request for an emergency interim rate increase.
State Farm submitted the request on February 3, 2025, and is seeking a 22% increase for homeowners, 15% for renters, 15% for condo unitowners, and 38% for rental dwelling.
To be approved for the increased rates, State Farm must provide documentation and demonstrate the necessity for the increase, which the Commissioner does not believe they have met.
While only the Commissioner can approve the request, public participants can make recommendations. Consumer Watchdog, one such participant, submitted a preliminary response disapproving of the rate increase. The Department recommended providing State Farm with interim rates subject to refunds pending a final decision in a rate hearing.
The Commissioner requires more information from State Farm before a final decision can be made. The Commissioner requests that State Farm, the Department, and Consumer Watchdog meet for discussion on February 26, 2025, at 10:30 AM, in the Department’s Oakland office.
The letter can be found here.