State Farm approved for California rate increase

Insurance Commissioner Ricardo Lara adopted a judge’s ruling granting State Farm an emergency 17% rate increase, instead of the 21.8% that was originally requested.

As part of the approval, State Farm General will receive an immediate $400 million cash infusion from its parent company, State Farm, to address its “serious financial condition.” State Farm is also precluded from issuing any new block non-renewals through the end of 2025.

State Farm General will continue to evaluate its business as conditions change and is pausing new group non-renewals throughout 2025 for non-tenant homeowners; tenants – renters; tenants – condominium unitowners; and rental dwelling properties.

As of May 12, State Farm paid more than $3.51 billion related to the wildfires and it is handling more than 12,692 claims.