Farmers Insurance Allegedly Overcharged Its Most Loyal Customers in Violation of Proposition 103, Asks Court to Stop Agency Investigation, Says Consumer Watchdog
Consumer Watchdog and lawyers for Farmers' customers have joined the investigation and are opposing Farmers' attempt to derail it.
Evidence uncovered over the course of a two-year inquiry undertaken by the
According to experts for the
Overcharging customers for auto insurance is a violation of insurance reform Proposition 103, which stringently regulates the factors that insurance companies may consider when setting prices. "Price optimization" and the use of "demand elasticity" is illegal in
A public hearing by the
"The evidence already obtained in the investigation shows that Farmers betrayed its longtime customers, denying them the reward for being lower risk drivers," said
Tomorrow's hearing will be held at Dept. 17 of
Background on the Case
In
Read Consumer Watchdog's expert testimony HERE (with temporary redactions reflecting Farmers' claim that the evidence should be kept secret).
Read the Insurance Commissioner's
Background on Proposition 103
Enacted by
For more information about Proposition 103 visit: https://www.consumerwatchdog.org/prop-103-california-insurance-reform
Consumer Watchdog, founded in 1985, is a non-profit, non-partisan consumer protection and advocacy organization.
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SOURCE Consumer Watchdog
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