Two major California insurers plot massive rate hikes — bringing misery for nearly 1M homes
Two major California insurers, AAA-affiliated Interinsurance Exchange and Travelers Insurance, have filed for significant rate changes that could drastically affect homeowners. While some policyholders may see rate decreases, others could face steep increases, with certain premiums rising from $1,650 to $13,100 annually. The proposed changes are part of broader reforms under California's Sustainable Insurance Strategy aimed at ensuring market sustainability.
- ▪The AAA-affiliated Interinsurance Exchange of the Automobile Club applied for an 11.2% rate increase for homeowners, while proposing decreases for condos and renters.
- ▪Travelers Insurance is seeking a 6.9% increase for homeowners and rate reductions for renters, condo owners, and condo landlords.
- ▪Only about 25% of Travelers' customers would see a rate decrease, while roughly 60% of its homeowners would face higher premiums.
- ▪The two insurers collectively cover approximately 760,000 homes in California.
- ▪Other insurers, including Mercury Insurance, USAA, and Pacific Specialty Insurance Co., have already received approval for rate increases under the same regulatory reforms.
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Metro Two major California insurers plot massive rate hikes — bringing misery for nearly 1M homes By Benjamin Brown Published May 3, 2026, 8:29 p.m. ET Two major insurers in California plan on raising rates by double digits for single-family homes that could cause premiums to skyrocket. The AAA-affiliated Interinsurance Exchange of the Automobile Club applied to raise rates for homeowners by 11.2%, while rates for condos and people renting a home would drop by 20.5% and 27% respectively, according to the San Francisco Chronicle citing new filings with the California Department of Insurance. If approved, the impact would vary, with some seeing a decrease as much as 80% while others could go from paying around $1,650 a year to $13,100, the paper reported.
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