State Farm has requested to cut homeowners rates by 11% or so in California. WOO HOO! This announcement came from the Dept. of Insurance. This comes as USAA has also asked for a rate decrease.
I won’t get technical here, but basically, rates have to be approved by the Dept. of Insurance to make sure that they are fair to the consumer and that the insurance company will be on strong financial footing to pay claims. So, these are just requests and the Dept. of Insurance can either say yes, no, or give us a bigger rate cut. We will have to wait and see.
Interestingly, while other insurance companies are asking for rate cuts, Allstate wants to raise rates. Unbelievable!
The bottom line: shop around on rates, especially in the next 6 months as these rate reductions should be approved. It will pay to keep an eye on rates.