Instead of Requested Increase in Rates, Liberty Mutual Gets Large Decrease
Posted by Todd Foreman
In August 2008, Liberty Mutual Insurance Company submitted applications to the California Department of Insurance for a rate increase of 4% and revisions to its auto rating factor plan (that’s the plan an insurer uses to distribute rates among its different policyholders, for example, charging less to someone who drives 5,000 miles versus charging more to someone who drives 15,000 miles).
Consumer Watchdog intervened in October 2008, identifying various reasons why Liberty's proposed rates were excessive and their auto rating factor plan violated the law. For example, Liberty Mutual required married people to live together to receive the “married” discount and failed to give the statutorily required 20% Good Driver Discount to all drivers who were eligible.
After years of countless meetings with the Department of Insurance, the parties agreed that, instead of a 4% increase, Liberty Mutual would implement a 5.9% decrease in its rates and fix several deficiencies in its auto rating factor plan to make it legal and fair.
The difference between Liberty's original proposed rate and the rate are now going to enact is $24 million. That's money that will be staying in California drivers' pockets this year instead of getting sucked up by an insurance company.
2/16/2014Blog PostTriple-A has been American drivers’ friend almost since U.S. roads linked the nation together. It has rescued families from... More >
1/29/2014Courtroom CaseInsurance companies have been forcing the middle class to pay for Auto Insurance discounts given to a select few. Consumer... More >
1/29/2014News ReleaseCitizen Groups Petition Insurance Commissioner Jones to Stop Auto Insurance Surcharges Based on Occupation and Education LevelSanta Monica, CA - Fourteen non-profit citizen, consumer and low income advocacy organizations today formally petitioned... More >
2/27/2014News ReleaseConsumer Watchdog Challenge to Farmers’ Auto Rate Filing Seeks to Enforce Proposition 103’s Good Driver Discount Policy MandatesSanta Monica, CA - Consumer Watchdog petitioned the Insurance Commissioner this week for a public hearing on the “new... More >
10/1/2014News ReleaseSANTA MONICA, CA – Consumer Watchdog today challenged the idea that widespread use of fully autonomous or driverless cars... More >