More Californians are turning to the state’s FAIR Plan as private insurers pull back from high-risk areas. State data shows the FAIR Plan added nearly twenty-two thousand new policies by the end of last year, while several major insurers plan to add far fewer new policies even after winning rate increases. Regulators say companies like Mercury Insurance received approval for significant rate hikes with promises to expand coverage, though some insurers have still dropped tens of thousands of policies since 2023. The shift is adding pressure to California’s already strained home insurance system.