New Study Shows Proposition 103 Saved Californians $23 Billion 1989-1998
Washington, D.C. — A 90-page study by the Consumer Federation of America (CFA) concludes that California Proposition 103, approved by voters in 1988, has saved consumers more than $23 billion through stringent regulations that blocked unjustified rate increases.
The Washington, D.C.-based organization found that from 1989 to 1998, auto insurance rates declined by 4 percent in California while they were rising by more than 25 percent in the rest of the country. That decline represents the lowest rate of change of any state in the nation.
The Foundation for Taxpayer and Consumer Rights has taken the lead in defending and enforcing the provisions of Proposition 103. Harvey Rosenfield, FTCR’s President, authored Proposition 103 and organized the campaign for its passage. Insurance companies spent $80 million in their unsuccessful effort to defeat Proposition 103.
Read the CFA Report News Release and an updated CFA news release on California auto insurance rates.