Bill Will Require a Study Before Changes to Calif. Auto Rating Factors Can Go Into Effect
West News • April 7, 2006
A bipartisan group of five assemblymembers joined with local elected officials and concerned citizens at a news conference in Sacramento to support AB 2840, which they say will help ensure fair ...
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Subject: Zip Code Rating
Posted On: April 10, 2006, 5:58 pm CDT
Posted By: rolfneu
Comment:
Insurance Commissioner Garamendi's motives may be politically motivated (almost everything politicians do is 'politically' motivated)but the fact is using Zip codes as a primary rating factor was outlawed by Prop. 103. The carriers nontheless have used the insured's home address(Zip code) as the predominant factor in private passenger auto rating. Prop. 103 made it quite clear that driving record, miles driven, claim experience, type of vehicle, etc. should be the primary rating factors.
With all factors the same, my son's auto premium when we rated it was $1,700 more per year using his LA zip code rather my Dana Point zip code. Insurers may argue that there are more accidents in LA than Dana Point but the fact is that most of the drivers in LA are commuters from outside LA. (if you doubt that just look at the commuter traffic on the 101, 405, 10, 60, 91, 605, 710 and 5 coming in/out of LA). If you didn't have all the commuters in/out of LA, traffic in the 'city of Angels' would be a delight and accidents would go down and probably be less than in the suburbs.
ZIP Codes as the primary rating factor is unfair and the voters agreed when they passed Prop. 103. Garamendi is only pushing to enforce what has been law for some time. Folks in the suburbs have been getting a bargain on their auto insurance for some time at the expense of the urbanites.
Fairness cuts both ways and todate
West News 
Subject: Zip Code Rating
With all factors the same, my son's auto premium when we rated it was $1,700 more per year using his LA zip code rather my Dana Point zip code. Insurers may argue that there are more accidents in LA than Dana Point but the fact is that most of the drivers in LA are commuters from outside LA. (if you doubt that just look at the commuter traffic on the 101, 405, 10, 60, 91, 605, 710 and 5 coming in/out of LA). If you didn't have all the commuters in/out of LA, traffic in the 'city of Angels' would be a delight and accidents would go down and probably be less than in the suburbs.
ZIP Codes as the primary rating factor is unfair and the voters agreed when they passed Prop. 103. Garamendi is only pushing to enforce what has been law for some time. Folks in the suburbs have been getting a bargain on their auto insurance for some time at the expense of the urbanites.
Fairness cuts both ways and todate