Allstate has been approved for the largest rate increase in California of any major insurer in the past three years.
California’s Department of Insurance has approved Allstate’s request to jack up its home insurance rates by an average of 34.1% for its approximately 350,000 California customers.
The San Francisco Chronicle reported the new rates could vary wildly, with some homeowners getting rates decrease as deep as 57%, while at least one will their see rates soar by nearly 650%. The increase will first appear on bills at the first renewal date following Nov. 7.
This is the company’s fourth homeowner’s insurance rate increase in the past five years – it upped rates by an average of 4% in 2023 and by 6.9% in both 2021 and 2019. The new rate hike is the greatest since Homesite Insurance Co. received permission for a 38.2% increase in 2021.
Allstate’s increase will only impact homeowner’s insurance, but the company is seeking to raise insurance rates for it is condominium customers by an average of 30%.
“Higher home values and repair costs coupled with more frequent, severe weather lead to higher payments to help customers recover, so we need to adjust rates to better reflect the cost of protecting our customers,” said a company spokesperson in a statement.
Allstate is the state’s sixth largest home insurer, encompassing 5.5% of all homes. The company stopped selling new home, condominium and commercial insurance in June 2023, citing elevated costs related to construction and climate-related natural disasters. Last April, the company said would resume new sales if the state agreed to regulatory changes that would enable the company to add catastrophe modeling and incorporate the net cost of reinsurance into its rates.
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So unfair to live in CA and have to endure so many price increases. There is little choice for companies willing to issue new policies to begin with.
Property insurance, car insurance, and health insurance has skyrocketed while coverages have dropped. It’s completely out of control. We’ve had all of our properties increase over 65% in the past 2 years. One of our 3000 sqft brand new construction commercial buildings with metal roof and steel frame has a policy of $9850 and that was by far the cheapest I could find from at least 15 different carriers. Insanity.
For health insurance we pay $30k/year with $10k deductible as self-employed young family of 5. $40k annual and they basically cover nothing. They tried to fight us on covering WELLNESS EXAMS for our kids and wanted us to pay $1200 per kid. #1 that cost for weighing and looking in their ears is absolute insanity. Foreign companies charge $50-$100 for that. #2 that’s base level coverage stuff. If I’m paying $40k/annually and I can’t even get wellness exams covered I must have the worst $40k insurance in the world. They eventually agreed to cover it, but why do I even have to fight that. For the first time I’ve actually thought if it’s better to go uninsured and over 3 years save myself $120k and just get catastrophe insurance. If you’re considering going UNINSURED you know the system is broken. I’m a capitalist, but when it comes to health care that structure is a threat to lives and government must regulate it. USA has some of the best medical facilities and doctors, but they will literally bankrupt you for it. A recent study found 41% of Americans have medical debt. They literally decrease efficacy of treatments/drugs to get you to buy more of it and that’s an absolute terrible fact! Foreign countries do much better for their people on health coverage.
Our insurance after Obamacare went up 400%. Apparently the middle class pays the subsidies for everyone else
Where are your facts on this? Are you saying this because you don’t like Obama? The truth is 50M people have insurance because of the Affordable Care Act. My self-employed family with preexisting conditions (which happens to all of us as we get older) couldn’t have gotten health insurance without it. The government didn’t subsidize us, we paid full price for it. It’s a pool of insurers that agree to the rules to join it. You can choose whatever level of insurance you want to pay for. We were grateful for it.
Before the ACA was in existence we had to apply to get insurance. A nurse from Blue Cross Blue Shield came to our home, drew our blood, interviewed us, and then we had to wait weeks to find out if they’d accept us. We were young then and had no preexisting conditions, but if we did they wouldn’t have been covered. Once we were lucky enough to get in we didn’t dare leave.
If you didn’t have an employer that provided insurance, wouldn’t you be happy to have access to “Obamacare”?
Not sure where you got your insurance but I never had an insurance company take my blood let alone anything else. Just filled out paperwork. It is true that ACA is paid by the rest of the people. Those that needed ACA were people in difficult spots but also those that did not bother to ever get insurance till they needed it and was too late by then. Insurance was far more affordable before the ACA except those that have lower incomes and get subsidized. Look it up. Most never cared to get educated on how and why you get insurance early. They either relied on work or decide to spend money elsewhere. I was educated on insurance and self employed most of my life. I kept my individual insurance to this date 35 years. I got individual insurance for each of my kids at birth and kept till they worked and received or after ACA which killed those long laid plans as the cost skyrocketed. As always, when government gets involves to take care of those who don’t, the ones that did pay for it. As soon as government gets involved in most anything it is ruined.
You purchased your insurance 35 years ago and probably reached a point where you had no choice but to stay with the same insurance. When both my husband and I became self employed after I left corporate life 20 years ago we had to apply for private insurance and the application process was rigorous for all insurers, so maybe things changed 15 years later from when you got your insurance. We had to apply and then we were stuck with Blue Cross from that point forward until my husband left self employment and we had insurance through his new employer. Later, he became self employed again and at that point we were relieved to have the ACA because we wouldn’t have been able to get insurance due to age and preexisting conditions. Life changes, career changes, and when that happens it’s nice to know you can take care of your family’s medical needs by having access to purchasing insurance without worrying about preexisting conditions. Not all of us can be lucky enough to stay with the same job and insurance long term. This is why the ACA was created.
My family’s health insurance went from $340 a month to over $3,000 a month for a high deductible plan and we lost my daughter’s asthma doctor. America had hundreds of health insurance companies and 85% of Americans were “satisfied” with their health care. Then came Obamacare. Instead of addressing the small number of people needing help, it trashed the system and about a dozen corporations now control healthcare and pharma is out of control. Obamacare was a lie like everything from the government. Anyone defending Obamacare is either ignorant or a communist. Obama is a Marxist and Obamacare was never about anything but power and money.
Unbelievable….communist or Marxist. Ok. Speaking of communist, which presidential candidate loves communist Putin? Here’s a hint, it’s an old man.
I don’t think anyone that is reasonable and wants to have a healthy debate in this forum insults others. Clearly you’re not in a position that you needed the benefit of ACA. You should learn about it before insulting it and everyone that needs it, rather than just joining a tribe and going along with whatever they say.
Exactly, As Obama said,
” Hope and Change.”
He is one of the main reasons people in this country are struggling. He is a con artist.
I thoroughly agree with Johnny Q. All insurance is out of control! I have considered ditching “unhealth” insurance to cash pay and go catastrophic only too. I just need to find the sane way out! I recently got bloodwork labs done & the office asked if I wanted to cash pay the $150 fee or run it through my insurance. I opted to run it through insurance, only bc I have it. I got a bill from the insurance co for $720!!! I called the insurance company and complained about this racket and they asked if I wanted to “back it out” to cash pay option. I said yes & my bill was reduced to $220. COMPLETELY RIDICULOUS!!! It’s such a racket, I just don’t understand! Thankful my family is healthy however the cost to just have it in case is completely out of control. We never use it but pay thousands per year! And God forbid when we need to use it, I cant even imagine the bills. It makes you not want to go to the Dr. or the ER bc of exorbitant costs.
Please remain a capitalist. These problems are not caused by capitalism and not by “climate change” either. The cause is government interferance. There has been no change in weather related disasters, but there has been a significant change in the way the government manages forest (grass) lands. The government bowed down to extreme environmentalists that WANT more fires to rage and burn down stuctures that “don’t belong there” according to the environmentalists. Government has driven up costs by endless regulations and “green new deal” style laws. Healthcare costs are skyrocketing because of government and their insistance on covering illeagal aliens, as well as more and more regulations and red tape. Get the radical leftist politicians out of the California government, return to something that resembles common sense, put actual capitalism back in control, and these problems will evaporate.
You are absolutely correct David! In fact you can go all the back to Ted Kennedy who created this mess in the 1st place and then Pelosi who said we have to pass this bill to know what’s in it…wait a minute, isn’t it Congress who makes the law and she didn’t know what was in the bill?? WTF?? Then O’Bummer who said you can keep your doctor and it won’t cost you anymore🤬🤬🤬. Anyone with a D in front of their name needs to be voted out of office or not voted into office!! Wake up everyone, unless you want to live in a Marxist/Socialist society, you will have nothing and love it!!!!
Totally agree!!!
To Lee. My husband and I had Blue Cross fir 30 years. Our premiums were manageable. Obama care came. Blue Criss dropped coverage, and we now pay almost 800.00 per person, per month. Listen to David Campbell above. The problem is GOVERNMENT. Please remember the government pays for all theses gimmicks by raising taxes on all of us hard working people. Learn to be self sufficient. Do not expect government to pay for us. The more you rely on someone, the more control they have over you. Please vote with common sense. Remember: if you give a man a fish he will eat for today but teach a man to fish and he will eat for a lifetime. Believe in yourself, work hard and spend wisely. Down with Big Government. It is ruining this country
I hope all here will Vote Republican. If you don’t, then don’t complain
That is so terrible! And sad. And why so many people are fleeing CA.
Vote the democrats out and let’s see what happens. I don’t understand why the people of California continue to put up with this insanity.
lol, I agree. Without the Dems there wouldn’t be Social Security, Medicare, or the Affordable Care Act that they complain about but don’t understand. They sure like to use all of this though!
Just like the infrastructure bill that the R’s fought against bc Trump couldn’t do it but they [Republican congressman] all took the photo op’s with big smiles and pretended like they were a part of it when money was granted for their bridges and roads.
Newscum has run our state into the ground!
While I agree that insurance rates in CA are out of control, I’d rather pay higher insurance rates than put a dictator in the White House! Freedom at any price!!!
This is the result of what happens for continuous liberal government policies. Just keep voting that way and quit complaining when you get the results of what you voted for.
CA citizens (all Americans) need to see all of these insane rate, price hikes, wide open borders, lawlessness etc. are by design & to create hardships on the middle class so you will beg for their new world order. Sadly, just about everyone flunked the huge compliance test – you complied; you fell for the fear campaign & hoax virus, you voluntarily got the injection. They know now they can get a way with just about anything.
Just keep voting for the policies and the people who submitted and approved them. This may be another wake up call to California citizens who keep electing people who want more government, to change their choices, or it’s another nail in the coffin.
Wow!!!!!!!! Put the big D in front of all the real estate people who think Democrats created environmental catastrophes. Do any of you read books?
Mick,
I read the Holy Bible for Discernment and wisdom. What do U read for same.??