Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
Will your insurance go up? State Farm rate hike hearings kick off
State Farm seeks emergency rate hike citing January's wildfires
(
Frederic J. Brown
/
AFP via Getty Images
)
A hearing kicked off at the California Insurance Department’s office in Oakland Monday morning as part of the process to determine whether State Farm can institute substantial rate hikes across California.
The requested increases include 22% for homeowners and 15% for condo owners and renters. State Farm asked for an emergency rate hike in February following the deadly L.A. fires, for which the company estimates it will pay out $7.6 billion.
The hearing could continue for multiple days, with State Farm making the case for the increase and Consumer Watchdog, a consumer advocacy group, arguing that the company has not yet provided the information to prove that the rate hike is necessary.
An administrative law judge will then take the arguments into consideration before issuing a ruling within 10 days.
Support for LAist comes from
“The bottom line is that State Farm has not ponied up the numbers to prove that it needs the money,” Carmen Balber, executive director of Consumer Watchdog, told LAist. “Every Californian who has paid big rate increases over the past several years and now in the wake of the L.A. fires is having trouble getting their claims paid probably has real questions about whether or not this rate hike is justified.”
The rate increase, if approved, will go into effect on June 1 and could affect millions of residents. State Farm alone insures 250,000 homes in L.A. County, according to the company.
Watch the hearing here:
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
With less to prove than LA, the city is becoming a center of impressive culinary creativity. -
Nearly 470 sections of guardrailing were stolen in the last fiscal year in L.A. and Ventura counties.
-
With California voters facing a decision on redistricting this November, Surf City is poised to join the brewing battle over Congressional voting districts.
-
The drug dealer, the last of five defendants to plead guilty to federal charges linked to the 'Friends' actor’s death, will face a maximum sentence of 65 years in prison.
-
The weather’s been a little different lately, with humidity, isolated rain and wind gusts throughout much of Southern California. What’s causing the late-summer bout of gray?
-
Hexavalent chromium is the same carcinogen Erin Brockovich warned about in the 1990s, but researchers say more study is needed on the potential health effects of nanoparticles detected earlier this year. Experts will answer questions at a webinar this evening.
Best of LAist