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Allstate, one of California’s largest insurers, wants to raise its homeowners’ rates by an average of 34%, which could be the largest increase this year.
The rate hike would impact more than 350,000 policyholders if approved by the state’s Department of Insurance, according to the Los Angeles Times.
Last year, the insurance giant filed for a 39.6% rate increase and, in January, successfully amended its request to 34.1%, the outlet said, citing the state’s Department of Insurance.
STATE FARMS SEEKING MASSIVE RATE HIKES IN CALIFORNIA AS STATE’S INSURANCE CRISIS ESCALATES
An image of the sign for Allstate Insurance as photographed on March 16, 2020, in Melville, New York. ((Photo by Bruce Bennett/Getty Images))
A consumer advocacy group, Consumer Watchdog, is demanding that Allstate provides more data to homeowners on why the massive hike is necessary.
“Allstate is using secret algorithms to decide whether homeowners are at high risk of wildfire and how much they will pay. We’re pushing the company to explain that pricing and disclose to consumers exactly what is raising their premiums,” Carmen Balber, president of Consumer Watchdog, told the outlet.
A sign is shown on the entrance of an Allstate broker office on February 07, 2024, in Chicago, Illinois. Allstate Corp. today reported fourth-quarter earnings which exceeded Wall Street expectations. (Photo by Scott Olson/Getty Images) (Scott Olson/Getty Images / Getty Images)
Allstate’s rate hike request would surpass State Farm’s request last month of a 30% hike.
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State Farm, which is California’s largest home insurer, announced in March that it would not renew 72,000 property owner policies.
Their refusal of coverage joins Farmers and other local companies.
California Insurance Commissioner Ricardo Lara is trying to enact a reform to California’s insurance regulations by the end of the year. (Don Bartletti / Los Angeles Times via Getty Images / Getty Images)
Many insurance firms have threatened to pull out of the Golden State unless California Insurance Commissioner Ricardo Lara implements a survival strategy for the industry.
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Lara has been working on ways to reform insurance policy in the wildfire-prone state and hopes to implement changes by the end of the year to lure insurers back.
Fox News Digital has reached out to the state’s insurance commissioner and Allstate for comment.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.