Tag: Consumer Watchdog

Who’s Responsible? California Faces New Rate Hikes from State Farm and Allstate

Nordstrom
State Farm and Allstate Buildings - Who is causing high rates in California

California homeowners and renters may soon face significant financial strain as two of the state’s largest insurers, State Farm and Allstate, announce hefty rate hikes. These increases come against a backdrop of escalating climate change impacts and urban expansion into wildfire-prone areas. Significant Increases from Major Insurers State Farm, the largest home insurer in California, has applied for substantial rate hikes across its various insurance lines. The company, which insures nearly one in five homes in the state, has requested a 30% increase for homeowners insurance, a 52% increase for…

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California’s Insurer of Last Resort on the Brink Amid Wildfire Crisis

Angela Linders
california fair plan

Catastrophic Wildfires Upend Insurance Landscapes The California Fair Access to Insurance Requirements (FAIR) Plan, established as a safety net for homeowners in high-risk fire zones, faces an unprecedented threat of insolvency amid a flurry of catastrophic wildfires and increasing claims. This predicament has sparked intense scrutiny and discussions on sustainable insurance strategies while leaving many to wonder about the future of fire insurance availability in the state. The Increasing Burden on California FAIR Plan With an exodus of insurers from California’s market, the FAIR Plan has swelled to double its…

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State Farm aims to raise California auto insurance rates by $264 million

Live Insurance News
Auto insurance rates - Cash

The insurer is now catching up to other companies in raising their rates to pre-pandemic levels. Drivers in California who have been enjoying lower auto insurance rates than they were paying before the pandemic are likely to be losing that price advantage in the near future. The insurer will be returning the premiums it charges back up from the lows they hit after 2020. As motorists have stopped sheltering in place and are back on the roads, and the majority of people who had been working remotely are now headed…

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Auto Club Insurance files for $202 million California car insurance rate increase

G. Turner
Car insurance - Increase in Rates

Commissioner Ricardo Lara’s office has received the request to let the company hike premiums. Auto Club Insurance has filed for an overall California car insurance rate hike of 6.9 percent. This will impact 1.44 million policyholders and the total of 2.68 million vehicles they have insured through that provider. The rate increase will mean an average annual hike in premiums of $75 per vehicle ($140 per policy). There have already been several insurers that have filed in California to be able to increase their car insurance rates for new and…

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Consumer Watchdog says California Commissioner should stop Mercury’s insurance rate discrimination

Logan B.
Auto Insurance rate discrimination

The group sent a signature-filled petition to Commissioner Lara regarding job-related premiums calculations. Consumer Watchdog has issued a letter containing a petition to California Insurance Commissioner Ricardo Lara, calling for him to reject insurer Mercury’s insurance rate discrimination practices. The group wants the commissioner to stop the proposed rate hike based on job- and education-related calculations. Mercury has proposed a $131 million hike to its total auto premiums, and Consumer Watchdog has called for Commissioner Lara to reject it as well as the insurance rate discrimination it says the insurer…

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California Insurance Commissioner Ricardo Lara Apologizes for Accepting Industry Contributions

H. Cutner
Insurance Commissioner Ricardo Lara - Government Portrait from 2016

Lara released a letter last week that acknowledged that his campaign had solicited those contributions. California Insurance Commissioner Ricardo Lara has said he was sorry for having both solicited campaign contributions from the insurance industry and for having accepted them. Last Tuesday, he issued a letter in which he acknowledged the activity as well as his regret for having done so despite a campaign pledge he had made not to accept contributions from insurers. The letter was issued to a number of groups, including Public Advocates, United Policyholders and Health…

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Mercury Insurance ordered to pay $27.5 million in fines

Nordstrom
Mercury Insurance - Lawsuit - Gaval

A California appeals court has ruled in favor of reinstating the penalties against the insurer. In California, a state appeals court has reinstated a fine of $27.5 million in penalties against Mercury Insurance Co. The ruling from earlier this week was the outcome of a case accusing the insurer of charging illegal broker fees. The auto insurance company charged illegal broker fees in 180,000 transactions with its customers. The fees were charged to customers from 1999 through 2004. The fines against Mercury Insurance were originally imposed by the California Department…

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