California Fair Plan Rates Set To Spike Later This Year

Published Aug 14, 2026 11:50 am

Gann Fire response - CAL Fire image

Sacramento, CA — The California Fair Plan, the insurer of last resort, will increase rates later this year by an average of 29.1%.

It will start in mid-October and impact its roughly 675,000 customers. The figure approved by the California Department of Insurance is slightly below what the California Fair Plan had initially requested last year (wanted 35% average increase). Areas in higher-risk regions will see larger increases than those in lower-risk areas. All told, it is the highest average increase approved for the Fair Plan in many recent years.

Existing customers will see the increases when their policies come up for renewal (after October 15).

The request by the Fair Plan to the Insurance Commissioner came following impacts encountered in the state over the past couple of years, notably the Los Angeles area wildfires.

Policyholders will be able to apply for small home hardening and defensible-space-related discounts.