Posted on 07/02/2024 5:28:56 AM PDT by dennisw
READ MORE: The insurance on my 2012 Mazda went up 72% to $233 a month!'
A prominent insurance provider has aired an ultimatum to the entire state of California.
The firm, State Farm General, asked the state’s Department of Insurance Thursday to let them raise residential insurance rates for millions of citizens, or see them move out.
The move indicates financial trouble for the insurance giant, which currently covers homes razed by wildfires.
State Farm disclosed it is seeking a 30 percent rate hike for homeowners, a 36 percent increase for condo owners, and a 52 percent increase for renters as a result - a move that would only worsen the state’s already present housing crisis.
'This has the potential to affect millions of California consumers and the integrity of our residential property insurance market,' insurance commissioner Ricardo Lara said in a statement - as the filings make their way through the proper channels.
He added how he was now keen to 'get to the bottom' of the company’s financial situation - and will conduct an extensive review before deciding on the applications as a result.
'State Farm General’s latest rate filings raise serious questions about its financial condition,' he said of the number one insurance firm in the US.
He added how a rate hearing may even necessary, offering his commission an opportunity to hear from the public about the proposed rate changes.
Only then, he said, would officials make a decision on whether to approve the requests - a process that could end up taking months.
As it stands, the department is averaging 180 days per rate review, with some cases taking even longer, a department spokesperson confirmed to the LA Times.
(Excerpt) Read more at dailymail.co.uk ...
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I received notice from USAA yesterday that my home insurance is going up.
Their reason is that the cost of replacement materials has gone up.
My auto insurance from them has also gone up.
They claim that repair costs have gone up.
I also joined USAA in 1979.
They were a great company then.
They have lost their way.
They are a car insurance company for military Officers that was too successful.
They lost track of their owners.
Everything became about San Antonio and their employees (retirement homes, amusement parks, etc…).
They panicked about the force drawdown and opened up the membership and spent untold amounts of money advertising.
Now, they want to take the cash and use it for their favorite social causes instead of returning it to the owners.
The day-to-day operations of USAA are now run by civilians; some of whom spent a few years in the military.
It is not the same company as in 1979.
Maybe this explains why my auto insurance in another state is so high. If they can’t bleed Californians enough, they will try elsewhere. As I see it, this crap has to stop somewhere. If they can’t be viable as a company with what they are making, then they better make some changes somewhere, but the consumer is already hard put. I told my local agent that State Farm rates were were too high & it was admitted that they were. Somewhere here is “the rest of the story” as Paul Harvey would say.
Maybe this explains why my auto insurance in another state is so high. If they can’t bleed Californians enough, they will try elsewhere. As I see it, this crap has to stop somewhere. If they can’t be viable as a company with what they are making, then they better make some changes somewhere, but the consumer is already hard put. I told my local agent that State Farm rates were were too high & it was admitted that they were. Somewhere here is “the rest of the story” as Paul Harvey would say.
“a smart, cool black guy who is usually talking with stupid white people. It is insulting. Tired of the reverse racism, and I avoid business with any company that uses it in ads.”
THANK YOU! We do the same.
Is there are a black and white, the black is cooler and smarter.
If there’s a man and a woman, the woman is cooler and smarter.
If there’s a kid and an adult, the kid is cooler and smarter.
If you eat Oreos, you must be black and jump and jive.
Only blacks do laundry and buy insurance. I. Am. Sick. Of. It.
We must revolt.
Why are black people the only ones that do laundry on television?
Oh no they can’t. I’ve been with State Farm more than $25 years and LOVE them here in Virginia :)
“Why are black people the only ones that do laundry on television?”
That’s what I asked in my email to P&G on Friday when I told them they’re racists.
Our home insurance doubled and our auto almost tripled. We changed car policies so it only doubled.
We looked at changing our home policy too but the new carrier was only a few bucks cheaper.
I think this is how they plan to get us out of our cars and single family homes and into their damn “15 minute” cities (prison camps).
“If you have a loan, you generally MUST have insurance.”
Every time if you want to take out a loan, insurance is a mandatory part of that process.
“Consumer advocates have disputed the claims - paving the way for a painstaking probe over the next few months from the state’s insurance department.”
Actually, if State Farm announces that they are pulling out, completely, on Jan 1, 2025 and blame it on the political climate in that state (not global warming, dingbats), that is likely the BEST WAY to stay in California, as it would FORCE the state government to deal with the situation.
...or call their bluff. But doing so is VERY RISKY for California, for as much fraud and corruption as there is in private insurance, if the state takes over, especially given ‘gorgeous mosaic’ of their ethnic makeup, it will be MUCH, MUCH, worse.
After reading all the comments I’ve this to add. I’ve worked for one of the world’s largest insurance companies for 19 years (I.T., not business side). Yet have come to learn via the company-wide podcasts with the CEOs/higher ups that they are targeting areas to LEAVE. As of now they’re no longer even advertising and quietly closing or moving their office out. Why?
California, Detroit, Chicago...those are the prime examples because (in the words of the ‘big guy’) the liberal courts are much, more likely to rule on the side of the claimant and award outlandish compensation. That and HIGH CRIME rates with little or no penalty for the criminals who continually re-offend. Never were natural disasters mentioned as a reason although Hawaii was mentioned in that the cost to rebuild after the fires would be very, high, but that they were committed to stay in Hawaii.
Things that make you go HMMMM?...
Maybe there are too many claims with all the unlicensed, uninsured illegals driving drunk, killing people on the highway, etc.
What a mess California is🙄
What the hell was Jake doing in the house at 2 in the morning? Was he under the bed?
“At some point, a large segment of the population will simply forego auto/property insurance because they do not possess assets that exceed the cost of the insurance itself - or the benefit of the insurance is unlikely to exceed the cost.”
Being a conservative, I paid off my house early, but I still keep insurance for the case of some type of lawsuit against me, such as from a contractor doing work. But there is a limit to this...
State Farm is the worst. Years ago, they had us as having a fireplace, which we didn’t, to charge more. Then when we got a new vehicle, they put it on a kid to charge more. Evil, evil. Don’t do business with them. Of course, they’re pretty much all the same - $$$$$.
Just need some state-run home/auto insurance.
No tickets,no accidents,no claims in about 10 years.
= = =
I seem to recall that rates based on accidents and claims and living area were deemed to be racist.
So everyones rates were evened out. (raised).
Agreed...just let that big stinking turd continue to circle the toilet bowl until things become so untenable that at some point they start to reflect on who they put into elected offices.
a large segment of the population will simply forego auto/property insurance
= = =
In CA if your auto insurance drops, the ins. company tells the DMV.
The DMV, with lightning speed, informs you that your registration is now canceled until you renew. (See DMV can do something quickly.)
Ha. Not that there’s anything wrong with that? Huh?
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