Finally, after 17 years of fighting in CA
08-17-06, 03:05 PM
#1
Lexus Test Driver
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Finally, after 17 years of fighting in CA
California's largest auto insurer, State Farm Mutual Automobile Insurance Co., said Thursday it plans to cut premiums 8 percent to comply with a state law that require rates to be based mainly on driving records rather than where motorists live.
Thursday was the deadline for auto insurers to submit new rate plans based on Proposition 103, a voter initiative passed in 1988. This action follows a state appellate court decision Wednesday that rejected an attempt by insurers to block the rules.
State Farm's reduction means 93 percent of the company's policyholders - or about 3 million California drivers - will see their premiums drop by 8 percent for a total savings of $204 million.
Insurance Commissioner John Garamendi said Thursday he expected other auto insurers to follow State Farm's lead.
"Finally, after 17 years of fighting, the insurance companies have thrown in the towel and they're going to obey the will of voters in California," Garamendi said in a press conference.
Several insurers, including USAA and the Automobile Club of Southern California, have already turned in rate plans based on the proposition, Garamendi said.
"We anticipate ... most of the auto insurance companies will be lowering rates and rewarding safe drivers, wherever they may be in the state of California," he said.
http://sfgate.com/cgi-bin/article.cg...NG0DKKEBV4.DTL
Thursday was the deadline for auto insurers to submit new rate plans based on Proposition 103, a voter initiative passed in 1988. This action follows a state appellate court decision Wednesday that rejected an attempt by insurers to block the rules.
State Farm's reduction means 93 percent of the company's policyholders - or about 3 million California drivers - will see their premiums drop by 8 percent for a total savings of $204 million.
Insurance Commissioner John Garamendi said Thursday he expected other auto insurers to follow State Farm's lead.
"Finally, after 17 years of fighting, the insurance companies have thrown in the towel and they're going to obey the will of voters in California," Garamendi said in a press conference.
Several insurers, including USAA and the Automobile Club of Southern California, have already turned in rate plans based on the proposition, Garamendi said.
"We anticipate ... most of the auto insurance companies will be lowering rates and rewarding safe drivers, wherever they may be in the state of California," he said.
http://sfgate.com/cgi-bin/article.cg...NG0DKKEBV4.DTL
How the system screws the people over.
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