Allstate Gets 34% Rate Hike Approval in California

The California Department of Insurance has approved Allstate's request to increase its homeowners insurance premiums by an average of 34.1%, the largest rate hike for a major insurer in over three years. This decision affects over 350,000 policyholders, with the increases taking effect at renewal dates following November 7, 2023. The rate hike is in response to increased repair costs, more frequent severe weather events, and legal system abuse. Allstate's move follows similar increases by other insurers like State Farm, which recently received approval for a 20% hike. The insurance industry in California is under pressure due to escalating risks from wildfires and inflation, leading many insurers to either raise rates or withdraw from the market. Consumer advocacy groups acknowledge the necessity of these hikes but advise homeowners to shop around for better deals.