Which states are insurance companies pulling out of?
As more natural catastrophes become billion-dollar disasters and construction costs soar, some insurers have begun limiting coverage or suspending new policies in states including Florida, California and Louisiana.
As well as leaving America's most populous state, American National has plans to cease offering homeowners' insurance in an additional eight states, including Arkansas, Colorado, Louisiana, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington.
Is Progressive pulling out of Florida? Progressive said it has no plans of leaving Florida. A spokesperson told WFLA that this rebalancing would help the company continue writing business in Florida in a “meaningful” way. Progressive didn't renew 56,000 policies last year, according to Triple-I.
California, Florida, and Texas take the top spots as the states with the most home insurance losses between 2015 and 2019 — not surprising given the natural disasters these states are prone to.
WASHINGTON, D.C. (NewsNation) — Days after a major insurance provider announced it was pulling out of Florida due to environmental risks, State Farm Insurance announced Thursday it is recommitting itself to the residents of the state, NewsNation has learned.
Kevelighan, of the Insurance Information Institute, said that law, called Proposition 103, creates a regulatory environment in California that restricts the industry from adequately including climate risk in its forecasting and is one of the reasons the industry is being forced to pull back coverage in the state.
| Company | Forbes Advisor Rating | Our expert take |
|---|---|---|
| Nationwide | 5.0 | Best overall |
| USAA | 4.8 | Best for military members and veterans |
| Travelers | 4.7 | Great for drivers with speeding tickets |
| Erie | 4.6 | Best for drivers who caused an accident |
Executive Life Insurance Company (1991) - One of the largest life insurance companies in the US, it went bankrupt due to investment losses in junk bonds.
Is USAA pulling out of Florida?
USAA will continue to provide auto insurance, life insurance, banking, and investment products to its members in Florida, as long as the state permits it to do so.
Newsweek: "Florida Could Soon Become Uninsurable—and Other States Will Likely Follow" RFF Fellow Penny Liao is quoted several times in an article about the increasing risks of insuring properties that often face the brunt of climate-related disasters.
Since 2017, eleven property and casualty companies that offered homeowners insurance in Florida liquidated. Five of those companies liquidated in 2022, and United Property & Casualty Insurance Company liquidated in 2023.
New York. With the highest average cost for minimum coverage car insurance in the nation, New York drivers typically pay significantly more for car insurance than the average U.S. driver. And New York minimum car insurance could get even more expensive, due to new state requirements.
On average, the Hanover Insurance Group offers the most expensive car insurance and Michigan is the country's most expensive state for auto insurance. Discover if you are overpaying for car insurance below.
Farmers Insurance announced in July the company will be withdrawing from the Florida insurance market due to the level of insurance risk posed in the state.
The U.S. Census Bureau shows that nearly 276,000 people left Florida in 2022, and it's believed that skyrocketing insurance premiums motivated many of the departures. The study showed most of the former Florida residents remained in the sun belt, moving to states like North Carolina, Georgia, Tennessee and Texas.
State Farm and Allstate, two larger insurers in the Golden State, also announced that they would stop accepting insurance applications for all business and personal property in statewide earlier this year.
Like State Farm, which announced a similar move last week, Allstate cited worsening climate conditions that had made doing business there difficult. California property owners hoping to open new insurance policies are no longer able to do so with one of the nation's largest homeowner insurance companies.
Is California becoming uninsurable?
The growing risk of wildfire means that some parts of California are becoming "essentially 'uninsurable'," according to a new analysis from the First Street Foundation, a non-profit that studies climate risks, shared first with CBS News.
In simple terms, insurance companies are leaving Florida because it's best for their bottom line. When an insurance company is paying out more in claims than it's taking in, they run the risk of not being able to pay out any claims at all.
While 100% of complaints in Vermont were about claims, 79% of the complaints lodged in Maryland were related to policy cost and cancellations. California was the state with the most home and auto insurance complaints, recording 772 complaints in 2019 – most of which were related to unsatisfactory settlements or offers.
| Best car insurance category | Company winner |
|---|---|
| Best insurance company for having few customer complaints | American Family |
| Best insurance company for financial strength | Auto-Owners |
| Best insurance company for discounts | Amica |
| Best insurance company for customer satisfaction | State Farm |
Amica is the best car insurance company for California drivers when it comes to customer satisfaction, based on the low number of complaints to state regulators for a company of its size. This is based on a comparison across auto insurers in California with a NerdWallet 5.0-star rating.
