The state insurance commissioner has announced a rate reduction for drivers
covered by AAA of Southern California. Commissioner Steve Poizner says
the rate cut of more than 5 percent will save the average policyholder
about $100 a year.
Steve Poizner: “This is great news because it will
infuse $101 million into the Southern California economy. Of course,
that couldn’t come at a better time given the tough economic
Consumer groups are not cheering. Doug Heller is with Consumer
Watchdog. It wanted the commissioner to cut AAA’s premiums by 13
percent – more than double what he approved.
Doug Heller: “We’re still being overcharged.
Commissioner Poizner did not go to the mat for consumers on this rate
cut and he always should be looking out for consumers, especially at a
time like this, in these tough financial times.”
The consumer group says it will formally ask the state Department of
Insurance to reconsider the size of the rate cut. An executive with AAA
applauded the commissioner’s decision.