Los Angeles, CA – Insurance Commissioner Ricardo Lara should reject Allstate’s proposed $165 million auto insurance rate hike and its two-tiered job- and education-based discriminatory rating system, wrote Consumer Watchdog in a letter sent to the Commissioner today. The group called on the Commissioner to adopt regulations to require all insurance companies industrywide to rate Californians fairly, regardless of their job or education levels, as he promised to do nearly three years ago.

Los Angeles, CA -- The insurance industry’s use of algorithms and Artificial Intelligence to set premiums and determine who can get insurance coverage is a serious threat to Californians and a violation of California law, Consumer Watchdog will tell the Insurance Commissioner at a public meeting today called to examine high-tech bias and discrimination by insurance companies.

Los Angeles, CA – Insurance Commissioner Ricardo Lara should reject GEICO’s proposed $268 million auto insurance rate hike and its job- and education-based discriminatory rating system, wrote Consumer Watchdog in a petition filed with the California Department of Insurance (CDI) yesterday.  

Los Angeles, CA – Insurance Commissioner Ricardo Lara should reject the Interinsurance Exchange of the Automobile Club’s (“Auto Club”) proposed $202 million auto insurance rate hike and its job- and education-based discriminatory rating system under which working-class Californians pay up to 9% higher premiums, wrote Consumer Watchdog in a petition filed with the California Department of Insurance (CDI) today.  

Los Angeles, CA – Consumer Watchdog joined 39 other public interest organizations in comments calling on the Federal Insurance Office to spotlight how the insurance industry contributes to climate change by insuring fossil fuel projects. A 2019 petition on this topic to California Insurance Commissioner Ricardo Lara was denied.
 

San Diego, CA – The Insurance Commissioner cannot force insurance companies to repay consumers when they charge excessive rates, the state Court of Appeal in San Diego ruled late Friday afternoon. 

Los Angeles, CA -- While the vast majority of Californians drove far less last year, most California insurance companies continued to charge pre-pandemic auto insurance rates, reaping a windfall of about $5.5 billion, according to an analysis by Consumer Watchdog. Newly published 2020 data show that accident claims plummeted as cars idled in driveways, but insurance companies failed to reduce rates accordingly.

Sacramento, CA – Insurance companies’ illegal use of job and education level to price auto insurance discriminates against lower income drivers and communities of color and must end, Consumer Watchdog will testify at a California Department of Insurance workshop this afternoon.

Sacramento, CA -- Draft regulations released by the Department of Insurance Thursday move California one step closer to stopping auto insurance discrimination that has allowed insurers to overcharge lower income and minority drivers for decades, said Consumer Watchdog. The rules follow a petition submitted by Consumer Watchdog and ten civil rights and community groups to ban the use of job and education level in auto insurance rating.

Los Angeles, CA -- Consumer Watchdog has asked the Insurance Commissioner to block proposed hikes in the price of auto insurance sold to low income motorists in a number of California counties.

Los Angeles, CA – Consumer Watchdog today called on Insurance Commissioner Ricardo Lara to suspend all increases in auto insurance rates through September 1, or the termination of shelter-in-place restrictions, whichever comes later.

Read the letter to the Insurance Commissioner Ricardo Lara.

Los Angeles, CA – Insurance Commissioner Ricardo Lara should reject Farmers Insurance Group’s proposed 6.5–6.9% auto insurance rate increases and its 3-tiered rating system based on occupation under which first responders and essential workers on the front lines of the battle against COVID-19 pay higher rates, wrote Consumer Watchdog in a letter to the Commissioner today. Farmers’ request comes as a deadly pandemic sweeps California, for which virtually every California business has been ordered to close and residents ordered to stay home.

Sacramento, CA -- The American Property Casualty Insurance Association (APCIA) has launched a deceptive website, at www.protectourdiscounts.org, and advertising campaign to protect insurers’ ability to continue overcharging lower income and minority drivers for their auto insurance.

In comments submitted on proposed regulations Consumer Watchdog said rule could ban discrimination based on drivers’ occupation and education level; called for key amendments to ensure discrimination based on race and socioeconomic status ends.

Los Angeles, CA –  “A year ago, Consumer Watchdog and organizations representing consumers, low-income workers and communities of color petitioned Insurance Commissioner Ricardo Lara to ban the use of occupation and education to set auto insurance premiums. These unfair surcharges on lower-income and less-educated drivers drive up the cost of insurance for people who can least afford it.

Los Angeles, CA – The nonprofit group Consumer Watchdog has issued a report, with the help of car industry technologists, that finds all the top 2020 cars have Internet connections to safety critical systems that leave them vulnerable to fleet wide hacks. 

The group and experts warn that a fleet wide hack at rush-hour could result in a 9-11 scale catastrophe with approximately 3,000 deaths.  

Los Angeles, CA -- Farmers Insurance systematically overcharged its most loyal, longtime California customers from 2008 to 2018, according to evidence uncovered as part of an investigation ordered by the California Insurance Commissioner. Now, with a public hearing scheduled for June and facing millions of dollars in civil damages and penalties, Farmers and its affiliate, Mid-Century Insurance, are urging a Los Angeles Superior Court to stop the agency’s investigation.

Statement of Consumer Watchdog: “Thirty days ago, Consumer Watchdog and ten other organizations petitioned Insurance Commissioner Riccardo Lara to stop insurance companies’ discrimination against low-income drivers and communities of color based on their education or occupation.

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.

Los Angeles, CA– Today the Consumer Federation of America reports that Proposition 103, the insurance reform law passed by California voters on November 8, 1988, has saved drivers $154 billion on their auto insurance.

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.”   

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.