CFA: Insurance Reform Law Saved California Drivers Billions Of Dollars
By Lyle Adriano, INSURANCE BUSINESS AMERICA
October 18, 2018
The Consumer Federation of America (CFA) reports that California’s Proposition 103 insurance reform law has saved drivers $154 billion on their auto insurance.
Citing data from Consumer Watchdog, the CFA also noted in its latest report that Proposition 103 has lowered auto liability premiums in the state by 5.7% since 1989 – even as liability premiums increased 58.5% across the rest of the US.
California voters passed Proposition 103 on November 08, 1988. Provisions of the law include a requirement for insurance companies to justify and get approval for rate increases; this allows the public to challenge excessive rates and even unfair insurance company practices. The legislation also made the state insurance commissioner role an elected post.
“Three decades ago, California voters joined together with tens of thousands of small donations to put Proposition 103 on the ballot and pass it, despite an unprecedented $63 million campaign of lies and deception by the insurance industry,” said Proposition 103 author and Consumer Watchdog founder Harvey Rosenfield in a statement.
“$154 billion is a 30th birthday gift from Prop 103 to the people of California, rewarding a battle against insurance company overcharges and abuses that has been waged every day for the last three decades,” Rosenfield added.