Proposition 103 was passed in 1988 for the purpose of ending “Zip code discrimination.” Auto insurers have been placing more weight on where you live versus your driving record in determining rates. This approval of new auto insurance regulations will require insurers to place more weight on how safely you drive than on where you live.
Insurers are being given 30 days to submit new rating plans that comply with the new regulations and two years to phase in the fully implemented plans.
From now on insurers will only be able to set rates based on “the three mandatory factors of Prop. 103: driving record, annual miles driven and driving experience. No more.” according to Garamendi’s statement.
This is great news for California drivers. Now the onus is squarely on each individual drivers shoulders for dictating their auto insurance rates.
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