CALIFORNIA INSURERS GET RATE-HIKE APPROVAL AS STATE TRIES TO KEEP INSURERS FROM LEAVING

CALIFORNIA INSURERS GET RATE-HIKE APPROVAL AS STATE TRIES TO KEEP INSURERS FROM LEAVING 

California hopes to stem the tide of insurers leaving the state by granting many of their rate hike requests, some into the double digits. Though rate hikes are never great news, maintaining existing coverage can be crucial for homeowners who have a mortgage. Many mortgages require insurance as a prerequisite to purchasing property. 

Of 20 rate increase requests made with the California Department of Insurance in the last six months, 10 have been approved so far. The largest request for a rise in rates – up to 26.9 percent higher – was granted in March to the General Insurance Company, which ranks 10th in the California market share. It was followed by State Farm and the Interinsurance Exchange of the Automobile Club, whose rate hike requests of up to 20 percent each were approved.
Source: North Bay Business Journal
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