Farmers Insurance Wins 1.5% Average Rate Hike in California Play

The second-largest home insurer in California will raise policy rates for homeowners by an average 1.5% this fall. Farmers Insurance Group's rate hike was approved Monday.

That's an average — some customers could see their rates rise by much more than 1.5%, or may see their premiums decrease. Farmers is not saying what geographic areas will see the largest hikes.

But Farmers said it will increase its discounts for bundling its home and auto policies, cutting costs by 15% to 22%. Farmers will also increase the discounts homeowners can get for proving they have reduced their wildfire risks.

Farmers had originally asked for a 7% rate hike. In order to get the 1.5% average hike, Farmers had to agree to write a minimum of 5,596 new policies over the next two years in high wildfire risk areas.