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A major auto insurer returns to California — with a 30% price hike

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A major auto insurer returns to California — with a 30% price hike

California drivers can now buy an auto insurance policy directly from Allstate again, after the company hit pause on selling new insurance through its website or phone service to customers in the state last year.

But going back to business as usual comes with a cost. Allstate’s full return to the California auto insurance market only comes after regulators allowed the company to raise its rates by 30% on average across its whole book of business in the state.

“Our payments to help customers recover from accidents and disasters have increased significantly over the last few years,” an Allstate spokesperson said in a statement, noting that the company had continued selling policies through agents in California over the last year. “We need to adjust rates to reflect the cost of providing the protection our customers depend on.”

The increase for new and long-standing individual policyholders will occur on a case-by-case basis, according to a spokesperson from the California Department of Insurance, which has to approve all insurance rate increases in the state.

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On the lower end, some customers might see prices go up 10% to 15%. At the high end, rates could go up as much as 55%. The vast majority of policyholders will see the price of their plans jump somewhere between 25% and 45%, the spokesperson said.

This is just the newest chapter of California’s ongoing insurance saga. While home insurers have pulled out of wildfire zones and, in many cases, ceased writing new home policies in the state altogether in recent years, auto insurers have been traveling down an equally rocky road.

In April 2020, as stay-at-home orders for the COVID-19 pandemic cleared California’s roads, Insurance Commissioner Ricardo Lara ordered auto insurers to refund customers for their premium payments during March, April, and in some cases May of that year. Companies ended up refunding $2.6 billion in overpaid premiums to customers, according to the department late last year.

At the same time, his department stopped approving the rate increases that auto insurance companies typically request to account for their changing costs of doing business. During two years in which inflation surged, especially in the used car and auto repair markets, the Department of Insurance didn’t approve any new rate increases for auto insurers at all, and only resumed in 2022.

As a result, many insurers faced losses on their auto policies in 2022. State Farm’s largest subsidiary in the auto market paid out 92% of all the premiums it brought in to cover claims, which adds up to a net loss when agent salaries, marketing and other overhead costs are taken into account. Allstate didn’t fare much better, paying out 90% of its premiums just to cover claims — and multiple major divisions of Geico lost money outright on claims.

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Taken as a whole, 2022 was the worst year on record for California auto insurers, according to Department of Insurance data, which go back to 1991.

Now, companies are making up for those losses by hiking rates. State Farm is raising rates by 21% on average starting this month, and Geico is raising them by 12.8%.

Allstate’s customers in California aren’t the only ones facing higher costs, however: The company is raising rates by 14.6% in New York and 20% in New Jersey. The company said that these three rate increases should bring in an extra $1 billion in premiums over the course of the year. Despite having $57 billion in revenue in 2023 across the country, Allstate lost $188 million last fiscal year.

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David Ellison hits CinemaCon, vowing to make more movies with Paramount-Warner Bros.

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David Ellison hits CinemaCon, vowing to make more movies with Paramount-Warner Bros.

Paramount Skydance Chief Executive David Ellison made his case directly to theater owners Thursday, pledging to release a minimum of 30 films a year from the combined Paramount and Warner Bros. Discovery company during a speech at the CinemaCon trade convention in Las Vegas.

“I wanted to look every single one of you in the eye and give you my word,” Ellison said in a brief on-stage speech, adding that Paramount has already nearly doubled its film lineup for this year with 15 planned releases, up from eight in 2025.

He also said all films will remain in theaters exclusively for 45 days, starting Thursday. Films will then go to streaming platforms in 90 days. The amount of time that films stay in theaters — known as windowing — has been a controversial topic for theater owners, as some studios reduced that period during the pandemic. Theater operators have said the shortened window has trained audiences to wait to watch films at home and cuts into theater revenues.

“I have dedicated the last 20 years of my life to elevating and preserving film,” said Ellison, clad in a dark jacket and shirt with blue jeans. “And at Paramount, we want to tell even more great stories on the big screen — stories that make people think, laugh, dream, wonder and feel — and we want to share them with as broad an audience as possible.”

Ellison’s CinemaCon appearance comes as more than 1,000 Hollywood actors and creatives have signed a letter opposing Paramount’s proposed acquisition of Warner Bros. Supporters of the letter have said the deal would reduce competition in the industry and “further consolidate an already concentrated media landscape.”

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Some theater operators have also questioned whether the combined company could achieve its goal of releasing 30 films a year, particularly after the cost cuts that are expected after the merger closes.

“People can speculate all they want — but I am standing here today telling you personally that you can count on our complete commitment,” Ellison said. “And we’ll show you we mean it.”

The speech came after a star-studded video directed by “Wicked: For Good” director Jon M. Chu that was shot on the Paramount lot on Melrose Avenue and showcased directors and actors including Issa Rae, Will Smith, Chris Pratt, James Cameron and Timothée Chalamet that are working with the company.

The video closed with “Top Gun” actor Tom Cruise perched atop the Paramount water tower.

“As you saw, the Paramount lot is alive again,” Ellison said after the video. “And we could not be more excited.”

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Video: Why Your Paycheck Feels Smaller

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Video: Why Your Paycheck Feels Smaller

new video loaded: Why Your Paycheck Feels Smaller

Ben Casselman, our chief economics correspondent, explains why wages are not keeping up with inflation and what that means for American workers and the economy.

By Ben Casselman, Nour Idriss, Sutton Raphael and Stephanie Swart

April 18, 2026

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.

On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.

During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.

The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.

The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.

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(Jae C. Hong / Associated Press)

Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.

Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.

“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”

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The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.

Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.

Attorneys representing Baldwin and the producers were not immediately available for comment.

Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.

On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.

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The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.

Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.

New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.

Baldwin faced a similar charge, but the case against him unraveled spectacularly.

On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.

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Variety first reported on Friday’s court action.

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