Big insurance company plans to raise rates in California by a whopping unaffordable 34 percent

As the cost of living continues to climb in California, this rate increase adds to the financial pressures faced by residents.Photo byGustavo ZambellionUnsplash

Homeowners in California insured by Allstate are bracing for a significant financial hit as the company has been approved for a rate increase by the California Department of Insurance. The hike, averaging 34.1%, will impact over 350,000 policyholders statewide.

Allstate, the fourth-largest insurer in California, cited rising home values as the primary reason for the increase.

According to the company, higher property values lead to more costly repairs, which in turn necessitates higher premiums. This new rate adjustment adds to the already steep cost of living for many Californians.

As the cost of living continues to climb in California, this rate increase adds to the financial pressures faced by residents, further straining their budgets amidst already high expenses.