California’s insurance commission has turned down State Farm’s request to increase its rates, at least for now.
Commissioner Ricardo Lara sent a letter to the insurance provider on Friday stating that the company has not provided enough evidence to justify charging more for coverage.
Earlier this month, State Farm, the largest insurer in the state, asked for an emergency increase. The price hike would have been 22% for homeowners, but the commissioner said State Farm needs to explain better why its finances are suffering.
Lara has called the company to a meeting in Oakland in two weeks to discuss the details.
State Farm said it is “very disappointed ” the commissioner did not approve the rate increase, citing the LA fires as having further drained its resources.
A third-party intervenor will take part in the upcoming meeting.
Source: NBC Bay Area
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