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:
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.
State Farm Power Grab Threatens Auto Safety
SACRAMENTO, CA – Consumer Watchdog urged Assembly member Autumn Burke (D-Los Angeles) to withdraw legislation backed by State Farm Insurance because it “will irreparably harm policyholders who seek to repair their vehicles financially and, potentially, cost many consumers their safety, and even their lives.”
Consumer Watchdog’s Prop 103 Challenges Bring $227 Million in Insurance Rate Savings
SANTA MONICA, CA – Consumer Watchdog’s challenges filed under Proposition 103 to proposed auto, home and business insurance rate increases saved consumers $227.4 million in 2017, the nonprofit, nonpartisan public interest group said today.
Since 2003, the group’s challenges in rate proceedings before the Department of Insurance have saved consumers a total of $3.4 billion. Savings have averaged a little more than a quarter of a billion dollars – $227 million – per year.
Wildfires Should Ignite Crackdown on State Farm To Be Better Neighbor
The wildfires devastating Bel Air, Ventura and Southern California's canyons are destroying homes in their path. Unfortunately, many of those homeowners are going to find that when they try to rebuild their homeowners' policies may not cover the real costs.
It's a sad cycle that happens after too many wildfires, include the historic devastation fires wrought recently in Sonoma and Napa Valley.
California Insurance Regulator Orders Companies To Stop Discriminatory Pricing
In response to an investigative report, the California Department of Insurance has ordered Nationwide and USAA to not charge motorists in minority neighborhoods more than policyholders with similar risk profiles who live in predominantly white neighborhoods.
California Regulators Require Auto Insurers To Adjust Rates
This story was co-published with Consumer Reports.
California regulators said they have required Nationwide and USAA to adjust their auto insurance rates as a result of a report by ProPublica and Consumer Reports that many minority neighborhoods were paying more than white areas with the same risk.
California Dept. of Insurance Says It Has Stopped Overcharges Exposed by ProPublica
Santa Monica, CA -- Acting in response to an investigative report by journalists at ProPublica, the California Department of Insurance has ordered two insurance companies – Nationwide and USAA – to not charge motorists in minority neighborhoods more than motorists with similar risk profiles who live in predominantly white neighborhoods. California voters banned zip code-based insurance pricing when they passed Proposition 103 to prevent auto insurers from discriminating against minority drivers.
Farmers Insurance Asks Court To Block State Review Of Auto Rates And A Possible Refund Order
Farmers Insurance has asked a court to block a state review of its auto insurance rates dating to 2008, making it the latest case to test the limits of California’s landmark insurance law, Proposition 103.
The Woodland Hills firm, a unit of Swiss multinational Zurich Insurance Group, argued in a lawsuit last week that a plan by the Department of Insurance to review the rates — which are being challenged by a group of consumers in a separate case — is “unlawful under applicable law and current facts” and should be called off.
Consumer Watchdog Petitions Commissioner to Stop Travelers from Overcharging Small Business Owners
Santa Monica, CA – Consumer Watchdog has filed a petition challenging the insurance rates that two companies in the Travelers Group want to charge small businesses. The consumer group is seeking a 20% cut to the rates Travelers currently charges, which would deliver about $20 million in savings to policyholders.
Travelers’ rate proposal would affect nearly 16,000 businesses in the companies’ Master Pac program that provides liability and property coverage for small businesses such as barber shops, pet sitters, employment agencies, speech therapists, and car washes.
Consumer Watchdog Calls On Insurance Commissioner To Investigate If Insurers Are Violating Prop 103 By Pricing Based On Zip-Code
Santa Monica, CA – An analysis released today by non-profit journalists at ProPublica finds that four auto insurance companies in California mark up prices by as much as 32% for drivers in minority neighborhoods as compared to white neighborhoods with similar risk.
