Consumer Watchdog Challenges $202 Million Auto Club Insurance Rate Increase & Job-Based Insurance Rate Discrimination
Under
These grocery clerks, hotel workers, janitors, home healthcare aides, and other drivers without white-collar jobs will be surcharged, paying up to
"This economy is tough as it is—Californians shouldn't have to add price gouging by insurance companies to their growing list of financial concerns," said Consumer Watchdog staff attorney
A 2019 investigation by the
Consumer Watchdog called on Commissioner Lara to reject
"The Commissioner needs to protect working families and end these occupation-based overcharges that can cost
The Commissioner last approved
Occupation has never been approved by regulation as a lawful rating factor under voter-enacted Proposition 103.
Consumer Watchdog's petition also alleges that
Read Consumer Watchdog's Petition for Hearing and Petition to Intervene: https://consumerwatchdog.org/sites/default/files/2022-07/2022-07-28%20Interinsurance%20Auto%20PFH.pdf
Consumer Watchdog, along with ten community and civil rights organizations, challenged auto insurers' illegal and discriminatory use of job and education to set rates in
Read the community and civil rights groups' petition: https://consumerwatchdog.org/sites/default/files/2019-02/Job%26EducationPetition.pdf
The Department's analysis of industry data shows that drivers in the highest per capita income ZIP codes are more than twice as likely to receive occupational-based discounts than drivers in the lowest per capita income ZIP codes, with only 29% of drivers in predominately minority ZIP codes receiving such discounts as compared with 47% of drivers living in ZIP codes with a predominately white population. In addition, 75% of drivers in
Voter-approved Proposition 103 requires auto insurance premiums be based primarily on three mandatory factors—driving safety record, annual mileage, and years driving experience—and prohibits unfairly discriminatory rates. Proposition 103 prohibits this kind of unfair rate discrimination based on occupation, education, income, or race.
Consumer Watchdog is a non-profit public interest organization. Visit us on the web at www.ConsumerWatchdog.org
View original content:https://www.prnewswire.com/news-releases/consumer-watchdog-challenges-202-million-auto-club-insurance-rate-increase--job-based-insurance-rate-discrimination-301595583.html
SOURCE Consumer Watchdog
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