Do you know why State Farm quit writing new business in your state?
“In California. State Farm’s home and auto lines lost more than $2 billion in the first three months of 2023, with $1.8 billion in losses coming from its car insurance division alone.”
A company cannot survive long with these kinds of losses.
Also Farmers Insurance, which is based in CA, just quit writing new business there as well.
What is the outlook?
The CA Insurance Commissioner is going to have to allow Insurance Carriers to raise their rates and make coverage changes such as allowing a separate Wildfire Deductible just like we have for Wind/Hail/Hurricanes and Earthquake coverage.
If not, home/auto insurance is going to keep getting harder to find in California.
In other states, premiums are rising fast due to inflation in parts, labor and building supplies.
Having a good independent insurance agent gives you more choices as we represent more than one carrier.
Link to this article: https://finance.yahoo.com/news/farmers-insurance-lays-off-2-204634361.html
