Auto Insurance Regulation Changes Prompt Lawsuits

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(Sacramento, CA)
Thursday, July 20, 2006

The office of administrative law approved the new regulations earlier this week… they place more weight on how safely you drive than on where you live when figuring your rate.   Carl Borden, associate counsel for the Farm Bureau Federation says they’ve filed suit because the regulations are unfair to rural drivers:

“The result of that would be to subsidize the urban drivers by overpayments coming from many rural and suburban drivers.”

But Insurance Commissioner John Garamendi says the new regulations are fair and fulfill the intent of voters when they passed prop. 103 back in 1988.  He says they eliminate what he calls “zip code discrimination.”  Several insurance trade groups have filed a similar, but separate lawsuit to block the new regulations.