Following Judge’s Ruling, Final Decision on State Farm’s California Rate Hikes Remains With Commissioner Lara

FOR IMMEDIATE RELEASE

May 13, 2025

Contact: contact@insurancefairnessproject.com

Commissioner Lara Approves State Farm’s Rate Hikes on Californians Despite Pleas from Fire Survivors

New Ads: “Commissioner Lara, Haven’t We Paid Enough?”

Today, California Insurance Commissioner Ricardo Lara formally approved State Farm’s request for “emergency” rate hikes — which will raise premiums by 17% for homeowners, 15% for condo renters and owners, and 38% for rental homes.  

“Californians can't afford and don't deserve rate hikes, period,” said Sophia Wilson, spokesperson for the Insurance Fairness Project. “The insurance crisis is climate change-driven, insurance companies have made it worse, and it can't be solved on the backs of homeowners and renters. Commissioner Lara and other policy makers should stand with families, not insurance companies, and find meaningful long-term solutions. We can’t just rate hike our way out of this.”

In response to the rate hike decision, the Extreme Weather Survivors network has launched new ads featuring the faces and voices of Eaton Fire Survivors who feel they’ve been mistreated by State Farm. One of the ads asks: “State Farm is delaying fire survivor benefits… so why did Commissioner Lara let them raise rates?” Another asks: “Commissioner Lara, haven’t we paid enough?”

Spokespeople, including fire survivors, are available for comment. Prior to Lara’s decision, advocates released the following statements:

“The judge's approval is an insult to the thousands of State Farm policyholders in Los Angeles who are still waiting for the company to fulfill its obligations,” said Amanda Rosa, director of outreach at Extreme Weather Survivors. “This decision affects the lives of everyday people. And another rate increase doesn’t stop State Farm from canceling more policies, like it did for the thousands of people who were forced onto the state’s FAIR Plan a month before the fires broke out. It only makes it harder for communities to afford to stay in their homes and protect themselves from disasters we know are bound to happen. We call on Commissioner Lara to do right by these survivors and all Californians.”

“The decision now rests with Commissioner Lara,” said Joy Chen, leader of the Eaton Fire Survivors Network. “Hundreds of Palisades and Eaton fire survivors have reported illegal delays, denials, and underpayments by State Farm. He’s acknowledged receiving more complaints about State Farm than any other private insurer. Approving this hike without reviewing State Farm’s conduct would send a chilling message to every Californian: You can pay your premiums—but don’t count on your insurer when disaster strikes.” 

“Today’s decision that would make consumers pay now but allow State Farm to wait months before having to show its math is a great disappointment for consumers,” said Carmen Balber, executive director of Consumer Watchdog. “Voter-approved Proposition 103 says a rate hike shouldn’t come before the rate justification, but that’s what happened here. We urge the Commissioner to reject the proposed decision so State Farm policyholders, many of whom are struggling to get their claims paid by the company after the Los Angeles fires, aren’t overcharged.”

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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.