For those covered by State Farm in California's fire country, the insurer's latest rate increase is something many people will have to budget for.

State Farm has argued the emergency rate hikes are necessary to help the company avoid a “dire” financial crisis that could force them to drop more California policies.

California approved an up to 38% property insurance rate hike for customers of State Farm, the state’s largest property insurance provider, after California's January wildfires caused hundreds of billions of dollars in economic losses and threatened to drive the insurer out of the state.