The Auto Club insurers almost 1 million drivers and with this decrease the average annual savings in premiums will come to $134. Not a huge savings but more money in the consumers’ pocket.
“Proposition 103 was passed in 1988 demanding that auto insurance prices be based primarily on how safely you drive and not where you live. And, contrary to what many in the insurance industry have claimed, this clearly demonstrates that compliance with the proposed regulations does not necessitate rate increases.” Garamendi said in the press release.
Under the former Insurance Commissioner Chuck Quakenbush, “insurers avoided compliance with the law’s provisions calling for rates to be based primarily on three mandatory factors - driving record, driving experience, and number of miles driven and instead have been allowed to give more importance to other factors, such as marital status, gender, and most frequently, Zip code.”
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