Territorial Rating Upheld in Court

March 30, 2001

Thanks to a decision made March 28 by the California State Supreme Court, insurers can continue adjusting rates based partially on the ZIP code of the driver.

The decision to let the First District Court of Appeals ruling stand is a victory for insurers and good drivers, according to the Personal Insurance Federation of California Consumer activist groups, including Harvey Rosefield’s Foundation for Taxpayers and Consumers Rights, had protested that the practice of using ZIP codes in rating drivers violates Proposition 103, a measure to lower insurance premiums passed in 1988.

PIFC President Dan Dunmoyer called the protest “a misguided request [that] could have drastically raised insurance rates for good drivers in 51 of the state’s 58 counties.”

Was this article valuable?

Here are more articles you may enjoy.