What happened
You may have heard that Safeco is leaving California and dropping everyone. That's not what happened.
In December 2024, Safeco, which is owned by Liberty Mutual, announced it would pull back from several smaller lines of insurance in California over two years. Here's the list:
| Type of policy | No new policies from | Existing policies |
|---|---|---|
| Condo, renters, and watercraft | Jan. 1, 2025 | Non-renewals began Jan. 1, 2026 |
| Motorcycles and specialty vehicles | Jan. 1, 2026 | Non-renewals began Jan. 1, 2026 |
| Auto for drivers who don't qualify as "good drivers" | Jan. 1, 2026 | Non-renewals began Jan. 1, 2026 |
| Liberty Mutual condo and renters | Closed to new customers in 2023 | Non-renewals began Jan. 1, 2026 |
Safeco also discontinued some specific home products written through a few of its companies. It said the lines it's dropping have underperformed over the past decade, and it pointed to risk and volatility in the California market. In its words, it remains "committed to the California insurance market."
What it means for you
- Safeco home or regular auto: nothing in this announcement drops you. Your renewal still depends on normal underwriting, the same as with any insurer.
- Safeco condo, renters, motorcycle, or boat: expect a non-renewal at your next renewal, if you haven't gotten one already.
- Safeco auto with tickets or an accident: this one needs a closer look. "Good driver" has a specific legal meaning in California.
Are you a "good driver" under California law?
Generally, you qualify if, for the past three years, you've been licensed, you have no more than one violation point, and you weren't mainly at fault in an accident that injured or killed someone. A DUI conviction in the past seven years also disqualifies you. If you don't meet that test and your auto policy is with Safeco, watch your mail.
The good news: renters, condo, and motorcycle coverage are usually easy to replace. Drivers with tickets or accidents have fewer choices, but there are insurance companies that specialize in covering them.
What to do
- Check the company name on your declarations page. Safeco and Liberty Mutual are related but separate brands.
- Open every letter from your insurer. Companies have to send written notice before a policy ends. Don't let it sit in a pile.
- Start shopping 30 to 45 days before your renewal date. You get better choices when you're not rushed.
- Start the new policy the same day the old one ends. No gap, not even one day.
- Tell your lender. If you have a car loan, lease, or mortgage, send them proof of your new policy.
- Re-check your bundle. If you had a multi-policy discount, losing one policy can change the price of the others. Ask before you assume.
Sources
- Insurance Journal: Safeco to Stop Writing New Condo and Renter Policies in California (Dec. 20, 2024)
- Insurance Business: Safeco to exit specialty insurance lines in California by 2026
- California Insurance Code ยง1861.025 (good driver definition)
- CBS San Francisco: Liberty Mutual plans to exit state's condo, rental insurance markets in 2026
This article is general information about California insurance, checked against the sources above as of October 13, 2026. It isn't advice for your situation. Your policy documents and a licensed professional are the final word. Spot an error? Tell us and we'll correct it.
