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Insurance

Insurance

For 30 years, Consumer Watchdog has been the nation's leading insurance reform organization. We have saved consumers billions of dollars, developed innovative consumer programs and reversed some of the most anti-consumer insurance policies in the industry.

In 1988, Californians revolted against excessive auto, homeowner and business insurance premiums and passed Proposition 103, a ballot measure written by Consumer Watchdog founder Harvey Rosenfield to rein in insurance companies. Using the provisions of Prop 103, Consumer Watchdog has challenged rate hikes and lowered insurance rates by billions of dollars. The insurance reform has saved Californians over $100 billion over the last thirty years according to the Consumer Federation of America. California is the only state where auto insurance rates have gone down in real dollars over the last three decades. It's also the only state to ban ZIP-code based auto insurance, which Proposition 103 also did.

Today, Consumer Watchdog's legal team and advocates scrutinize all major rate hike proposals made by auto and home insurers in California and play an integral role in many of the regulatory actions enacted by the California Department of Insurance.

We use our experience to show how regulation can work to save consumers and spur competition, as California has the most robust auto insurance market in America.

 

Focus Areas:

Public Interest Groups Seek Nation’s First Rule Mandating Insurance Companies Disclose the Fossil Fuel Projects They Insure

Los Angeles, CA --- More than 60 environmental, consumer and social justice organizations petitioned California Insurance Commissioner Ricardo Lara today seeking first in the nation emergency regulations to require insurance companies to disclose the fossil fuel projects they insure, even as climate change-exacerbated catastrophes are costing insurance companies billions.

​​​​​​​Community Groups Petition California Insurance Commissioner Ricardo Lara To Ban Use of Occupation and Education to Price Auto Insurance 

Los Angeles, CA – Community organizations representing consumers, low-income workers and communities of color petitioned Insurance Commissioner Ricardo Lara today to ban the use of occupation and education to set auto insurance premiums. Many California auto insurance companies charge lower-income and less-educated drivers up to 15% more in order to give discounts to doctors, lawyers, other well-paying professions, and drivers with college degrees. The surcharge is illegal under California’s insurance reform law, Proposition 103.

Consumer Federation of America says California auto insurance protections are a model for the nation

The nonprofit Consumer Federation of America released a study this week finding that California’s tough “prior approval” regulation of auto insurance rates under Proposition 103 is a model for the nation. Nearly 30 years of insurance industry data show that California has maintained the slowest pace of premium growth of any state and built the second most competitive auto insurance market in the nation.

Consumer Watchdog To Insurance Companies: Stop Underwriting Fossil Fuel Projects That Exacerbate Fires And Hurricanes

San Francisco, CA – The nonprofit consumer group responsible for the most effective regulation of the insurance industry in America said today it would be challenging America’s insurance companies to join their European counterparts in refusing to underwrite coal and fossil fuel projects.

​​​​​​​US Supreme Court Refuses to Hear Mercury Insurance Challenge to Prop 103 Insurance Rules that Saved California Motorists Over $100 Billion

SANTA MONICA, CA - The U.S. Supreme Court today rejected a challenge brought by Mercury Insurance, State Farm and other insurance companies across the United States to insurance reform Proposition 103. That California law has saved motorists over $100 billion since 1988 by regulating insurance companies to limit price gouging, profiteering, inflated executive salaries and other unjustified expenses. (Mercury Casualty Company v.