California approved a State Farm insurance settlement after proposed increases reached 52%

California Insurance Commissioner Ricardo Lara finalized a settlement with State Farm General after the insurer requested premium increases up to 52%.

The settlement saves California homeowners and renters about $530 million, including $492 million from reduced rate increases.

Final approved rates: homeowners capped at 17%, renters at 15.65% (down from 52%), condominium owners at 5.8% (down from 36%), and rental dwellings at 32.8% (down from 38%).

State Farm must refund certain policyholders who paid temporary higher rates, with 10% annual interest, covering premiums from June 1, 2025.

The settlement imposes new conditions on State Farm regarding policy non-renewals and establishes a dedicated process for Los Angeles wildfire claims disputes.