CDI Orders Auto Insurers To Reveal Pandemic Profits

By Dave LaChance, REPAIRER DRIVEN NEWS

October 7, 2022

https://www.repairerdrivennews.com/2022/10/07/cdi-orders-auto-insurers-…

Maintaining that auto insurers still owe rebates to California drivers who were overcharged during the stay-at-home period of the pandemic, the state’s insurance commissioner has ordered 47 carriers to provide detailed information about their claim costs during that time.

KOVR CBS TV-13 Sacramento, CA: Insurance Companies Still Owe Over $3 Billion To CA Ratepayers from Overcharges During Lockdown

Insurers Say California's Inaction Threatens Auto Policies

By Don Thompson, ASSOCIATED PRESS

September 26, 2022

https://apnews.com/article/health-california-covid-traffic-02c6d9215243…

SACRAMENTO, Calif. (AP) — Top U.S. insurance companies and associations say California is risking a crisis in the nation’s largest automobile insurance market by refusing to approve any rate increases for more than two years, since the start of the coronavirus pandemic.

KNX 1070AM Los Angeles, CA: Insurance Companies Are Using Your Private Information To Raise Your Rates

By Emily Valdes, KNX 1070AM Los Angeles, CA

September 25, 2022

Click here to listen to the audio of this radio broadcast segment.

Harvey Rosenfield, author of Proposition 103 from 1988, tells KNX how insurance companies are using AI and online tracking to collect our private information without our consent and in violation of Prop 103.

Consumer Watchdog Calls on Insurance Commissioner Lara to Reject Allstate’s Job-Based Insurance Rate Discrimination, Adopt Regulations to Stop the Practice Industrywide

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.

Californians Need Protection Against Insurance Industry’s Use of Artificial Intelligence, Algorithms, Consumer Watchdog Will Tell Insurance Commissioner

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.

As Auto Insurance Rates Rise, Legislative and Non-Commercial Action and Other News Emerge

By Peter Kavinsky, CARE FREE TV

September 2, 2022

https://cablefreetv.org/as-auto-insurance-rates-rise-legislative-and-no…

Legislative and non-profit action on high auto insurance rates was recently announced in California and Illinois, as news of GEICO and State Farm’s June rate hikes are just a couple of many that don’t seem to be going away anytime soon.

CSAA Faces Lawsuit Over Claims It Overcharged Auto Insurance Policyholders $150 Million

By Lyle Adriano, INSURANCE BUSINESS AMERICA

August 11, 2022

https://www.insurancebusinessmag.com/us/news/breaking-news/csaa-faces-l…

A lawsuit filed in Alameda County Superior Court claims that CSAA – California’s seventh-largest auto insurance company – overcharged customers during the COVID-19 pandemic by at least $150 million.

California Commissioner Withholds Auto Insurance Rate Approvals, Rattles Market

By Renée Kiriluk-Hill, BESTWIRE

August 10. 2022

https://news.ambest.com/NewsContent.aspx?&refnum=243607

California Insurance Commissioner Ricardo Lara is pumping the brakes on private passenger auto rate hike requests from carriers, including Geico, which he said overcharged policyholders during COVID-19 pandemic shutdowns, according to spokesperson Gabriel Sanchez.

Consumer Watchdog Challenges $268 Million GEICO Auto Insurance Rate Hike & Job- and Education-Based Insurance Rate Discrimination

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.  

As Auto Insurance Rates Increase, Legislative & Nonprofit Actions Crop Up

By Lurah Lowery, REPAIRER DRIVEN NEWS

August 4, 2022

https://www.repairerdrivennews.com/2022/08/04/as-auto-insurance-rates-i…

There have been recent legislative and nonprofit actions announced in California and Illinois regarding high auto insurance rates as news of June rate increases by GEICO and State Farm are just a couple of many that don’t seem to be going away any time soon.

Consumer Watchdog Challenges $202 Million Auto Club Insurance Rate Increase & Job-Based Insurance Rate Discrimination

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.  

State Farm Doesn’t Have To Refund $100 Million To Homeowners, State Supreme Court Rules

By Bob Egelko, SAN FRANCISCO CHRONICLE

February 9, 2022

https://www.sfchronicle.com/bayarea/article/State-Farm-doesn-t-have-to-…

State Farm Insurance will not have to refund $100 million to homeowners after the state Supreme Court denied appeals Wednesday by California's insurance commissioner and a consumer organization, which both contended the customers had been overcharged.

Consumer Watchdog Calls on Federal Insurance Office to Expose Financial, Climate Risks of Insurance Industry’s Fossil Fuel Underwriting After California Fails to Act

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.
 

Auto Insurers Scored Windfall Profits From Pandemic Lockdowns

By Staff Reporters, REPAIR DRIVEN NEWS

September 6, 2021

https://www.repairerdrivennews.com/2021/09/06/auto-insurers-scored-wind…

Consumer groups analyzing insurers’ underwriting performance from 2020 have concluded that auto insurers reaped billions of dollars in excess profits due to reduced accidents during the lockdowns, and say consumers are still owed billions in additional refunds.

Auto Insurance Companies Overcharged California Motorists $5.5 Billion During the First Year of Pandemic, Study Shows

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.

California Moves to Curb Discriminatory Auto Insurance Pricing Using Job and Education Level That Charges Lower-Income, Non-White Drivers More

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.

California Moves to Curtail Job and Education-Based Auto Insurance Discrimination

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.

State Insurance Commissioner Ricardo Lara Should Stop All Auto Insurance Rate Increases During Pandemic, Says Consumer Watchdog

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.

Commissioner Lara Should Reject Farmers’ Auto Insurance Rate Hikes and Stop Surcharges Aimed At COVID-19 First Responders and Emergency Workers, Says Consumer Watchdog

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.

Insurance Lobbyists Launch Propaganda Campaign to Protect Their Ability To Overcharge Poor & Minority Drivers

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.

Proposed Rule Moves Department of Insurance Closer to Banning Illegal Price Discrimination Against Low-Income Drivers and Communities of Color

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.

Commissioner Lara Should Reject Job & Education-Based Insurance Discrimination, Says Consumer Watchdog

Los Angeles, CA – Consumer Watchdog said in a letter today that Insurance Commissioner Ricardo Lara should reject a proposed 5% auto insurance rate increase by Mercury Insurance Company that discriminates against lower income, less-educated drivers.

How Auto Insurers Use Your Nondriving Habits to Raise Prices

Safe, loyal drivers aren't always rewarded with cheaper rates.

By Kayda Norman, NERDWALLET

January 21, 2010

https://www.nerdwallet.com/blog/insurance/price-optimization/

You expect your car insurance rates to increase after you buy a new vehicle, cause a crash or add a young driver to your policy. But some insurers jack up prices based on seemingly unrelated data — like your magazine subscriptions or what groceries you buy.

Reaction To New CA Insurance Department Rules To Limit Education & Occupation In Auto Insurance

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.

CA Dept of Insurance Confirms Ongoing Insurance Discrimination Based on Education and Profession Affinity Groups

CA Supreme Court Upholds $27 Million Fine Against Mercury Insurance For Overcharging Customers

Ricardo Lara Wants To Give Insurance Companies Your Driving Data

Report Finds Hacking Of Internet Connected Cars Big National Security Threat

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.  

Farmers Insurance Is Caught Overcharging Its Most Loyal Customers in Violation of Proposition 103

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.

Insurance Companies Are Charging Drivers Without A College Degree More for Auto Insurance

Insurance Commissioner Promises Hearings – But Sets No Timeline To Stop Auto Insurance Discrimination

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.

​​​​​​​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 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.

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.