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:

Consumer Watchdog Applauds New California Rules Ending Gender-Based Discrimination in Auto Insurance Pricing

Los Angeles, CA – California auto insurers may no longer charge drivers more based on their gender under new rules just issued by the California Department of Insurance.

The rules bring auto insurance prices into line with the provisions of voter-approved Proposition 103 that prohibit unfair and discriminatory pricing and require rates to be based primarily on a person’s driving record and experience, not personal characteristics.

Top 10 US Insurance Companies Invest $51 Billion In Fossil Fuels

Los Angeles, CA — As a UN panel finds the world is losing the war with global warming and urgent action is needed, US insurance companies have reported holding more than $50.9 billion in fossil fuel investments that exacerbate climate change, according to reporting to national insurance regulators.

Consumer Watchdog’s review of public filings reveals nine of the 10 largest American insurance companies have considered the impact of climate change on their investments, but only two, AIG and Farmers, say that they have altered their investment strategy in response.

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.