Consumer Watchdog Applauds New California Rules Ending Gender-Based Discrimination in Auto Insurance Pricing
Los Angeles, CA – California auto insurers may no longer charge drivers more based on their gender under new rules just issued by the California Department of Insurance.
The rules bring auto insurance prices into line with the provisions of voter-approved Proposition 103 that prohibit unfair and discriminatory pricing and require rates to be based primarily on a person’s driving record and experience, not personal characteristics.
Farmers Insurance Is Caught Overcharging Its Most Loyal Customers in Violation of Proposition 103
Los Angeles, CA -- Farmers Insurance systematically overcharged its most loyal, longtime California customers from 2008 to 2018, according to evidence uncovered as part of an investigation ordered by the California Insurance Commissioner. Now, with a public hearing scheduled for June and facing millions of dollars in civil damages and penalties, Farmers and its affiliate, Mid-Century Insurance, are urging a Los Angeles Superior Court to stop the agency’s investigation.
Insurance Commissioner Promises Hearings – But Sets No Timeline To Stop Auto Insurance Discrimination
Statement of Consumer Watchdog: “Thirty days ago, Consumer Watchdog and ten other organizations petitioned Insurance Commissioner Riccardo Lara to stop insurance companies’ discrimination against low-income drivers and communities of color based on their education or occupation.
Community Groups Petition California Insurance Commissioner Ricardo Lara To Ban Use of Occupation and Education to Price Auto Insurance
Los Angeles, CA – Community organizations representing consumers, low-income workers and communities of color petitioned Insurance Commissioner Ricardo Lara today to ban the use of occupation and education to set auto insurance premiums. Many California auto insurance companies charge lower-income and less-educated drivers up to 15% more in order to give discounts to doctors, lawyers, other well-paying professions, and drivers with college degrees. The surcharge is illegal under California’s insurance reform law, Proposition 103.
Insurance Reform Proposition 103 Saved CA Drivers $154 Billion, Report Says
Los Angeles, CA– Today the Consumer Federation of America reports that Proposition 103, the insurance reform law passed by California voters on November 8, 1988, has saved drivers $154 billion on their auto insurance.
State Farm Power Grab Threatens Auto Safety
SACRAMENTO, CA – Consumer Watchdog urged Assembly member Autumn Burke (D-Los Angeles) to withdraw legislation backed by State Farm Insurance because it “will irreparably harm policyholders who seek to repair their vehicles financially and, potentially, cost many consumers their safety, and even their lives.”
California Dept. of Insurance Says It Has Stopped Overcharges Exposed by ProPublica
Santa Monica, CA -- Acting in response to an investigative report by journalists at ProPublica, the California Department of Insurance has ordered two insurance companies – Nationwide and USAA – to not charge motorists in minority neighborhoods more than motorists with similar risk profiles who live in predominantly white neighborhoods. California voters banned zip code-based insurance pricing when they passed Proposition 103 to prevent auto insurers from discriminating against minority drivers.
