In a press release on the California Department of Insurance website Garamendi “praised a judge’s decision to reject the insurance industry’s challenge to his Good Driver Auto Insurance Reforms. ‘This is a great victory for California voters and good drivers wherever they live. It means that Californians will finally realize the benefits of Proposition 103, which they approved more than 17 years go.”
Because of the Sacramento Superior Court judges “decision to reject the industry’s request for an injunction against the reforms” the insurance industry will be required to “base rates primarily on how safely you drive, and not where you live.”
These changes by Garamendi have implored two of the largest California auto insurers, The Auto Club of Southern California and USAA, to decrease their rates by 7 and 5 percent respectively. Combining just those two companies means just under 1.5 million policyholders will see their rates drop.
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