Mountain Democrat | July 12, 2024
Opinion: Insurance companies need more freedom in California
State Farm Insurance recently filed for rate increases with the California Department of Insurance. The company is seeking a 30% rate increase for most homeowners, a 36% increase for condominium owners and a 52% increase for renters. State Farm has the largest number of homeowner policies, followed by Liberty Mutual, Farmers, Nationwide and USAA. The official response from Insurance Commissioner Ricardo Lara states, “This has the potential to affect millions of California consumers.” Do you think?
Before State Farm policyholders go ballistic with the proposed rate increase, has anyone been grocery shopping recently? Where is the outrange when a jar of Best Foods Mayonnaise is $8? College students should be protesting $10 Happy Meals. President Biden said, “Inflation is the lowest since May of 2021.” So why do mortgage rates remain 200% higher?
State Farm should increase its rates to whatever company executives believe they need to be profitable. If that’s too much for existing policyholders, they should drop State Farm and choose another insurance provider. In a free and open market, that’s what consumers generally do. When the price of a product or service becomes too expensive, they shop for an alternative. However, a free and open insurance market doesn’t exist in California. State regulators have nearly regulated the homeowners insurance industry out of business.