Colfax resident says State Farm's attempt to raise prices again is not surprising

Published Date: 04/09/2025

California homeowners across the state could soon pay more for insurance. State Farm is meeting with state officials on Tuesday to ask for another round of rate hikes.



The decision from this meeting will impact policyholders everywhere but particularly those who live in fire country — like Placer County.

One Colfax woman who lost her home in a wildfire said that while rising rates are frustrating, they're not surprising.

"We don't talk about sports and weather up here. We talk about insurance and fire risk," Lizz Porter said.

After losing her home in the River Fire in 2021, Porter was able to rebuild thanks to coverage from the California FAIR Plan.

"Really, my FAIR plan experience was not terrible," she noted.

After rebuilding, Porter and most of her neighbors signed up with State Farm. While she has more coverage on her home, she's already seen the prices go up several times.

"Of course they're asking for a rate increase," she said. "That's what they do."

Now, State Farm is trying to do it again. State Farm representatives are requesting rate increases by up to 22% for homeowners, 15% for condos, and 38% for rental properties.

"Californians deserve fairness and transparency, and that's what's happening here today," said Michael Sollar, state insurance deputy commissioner.

California Insurance Commissioner Ricardo Lara already gave State Farm the green light to raise rates by 22% for homeowners. The approval, however, depends on whether the company can prove to a judge that the price increases are fair.

"State Farm has a list of things they have to provide, and they have to provide their financial statements," said Karl Susman, an insurance industry expert.

That includes showing the rising costs of wildfire damage and home repairs as well as rebuilding. They'll also need solid data proving that homes in fire-prone areas carry a higher risk.

State Farm must also demonstrate that the rate hike is necessary to maintain a fair profit margin, not just to boost earnings. If they can't make the case, a judge could reject the request.

Susman said several factors are driving State Farm's proposal, including the growing gap between rates and actual coverage along with inflation.

He warns that it could be a long time before any rates come back down.

"I think when we'll actually see real premium relief is when we have more carriers that are actually writing business and competing," Susman said. "We just don't have that in California yet."

If approved, rate increases could be implemented for new policyholders starting June 5.