California Releases New Regulations Governing Pricing of Auto Insurance
West News • April 27, 2006
California Insurance Commissioner John Garamendi has unveiled enhancements to his proposed regulations that will follow through on the promise voters sought when they approved Proposition 103 in ...
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Subject: Who Are You Going To Believe?
Posted On: April 28, 2006, 5:49 pm CDT
Posted By: Rolf Neu
Comment:
It's obvious that Joh Garamendi isn't popular with insurers and he admitedly has higher political aspirations. Notwithstanding whatever faults Garamendi may have, the fact is the voters of California voted for Prop. 103 which included rules for rating private passenger auto.
Garamendi is really only seeking to implement those rules contained in Prop 103 and which were ignored by Commissioner Quackenbush, who was owned lock - stock and barrel by the insurance industry. You might recall he was also forced to resign for having been found guilty of self dealing with money obtained from insurers.
The fact of the matter is that urban drivers with clean driving records pay significanlty more than their suburban counterparts. My son's auto premium using his LA zip code was $1,700 more than if I used my Dana Point zip code.
Insurers argue that there are more accidents in urban areas and therefore rates shoud be more for anyone living in those areas. Traffic in urban areas is heavier mostly due to people who commute into the city. I you doubt that, just look at the morning and evening commuter LA traffic on I-5, I-10, I-405- the 60, the 91 and the 101. If you removed all the commuters from City Los Angeles streets, traffic would light and very manageable.
If it makes you feel good to bash Garamendi please do so but enforecement of Prop 103 rating rules is long overdo.
West News 
Subject: Who Are You Going To Believe?
Garamendi is really only seeking to implement those rules contained in Prop 103 and which were ignored by Commissioner Quackenbush, who was owned lock - stock and barrel by the insurance industry. You might recall he was also forced to resign for having been found guilty of self dealing with money obtained from insurers.
The fact of the matter is that urban drivers with clean driving records pay significanlty more than their suburban counterparts. My son's auto premium using his LA zip code was $1,700 more than if I used my Dana Point zip code.
Insurers argue that there are more accidents in urban areas and therefore rates shoud be more for anyone living in those areas. Traffic in urban areas is heavier mostly due to people who commute into the city. I you doubt that, just look at the morning and evening commuter LA traffic on I-5, I-10, I-405- the 60, the 91 and the 101. If you removed all the commuters from City Los Angeles streets, traffic would light and very manageable.
If it makes you feel good to bash Garamendi please do so but enforecement of Prop 103 rating rules is long overdo.