California auto insurance groups sue state

Three insurance trade groups announced they have sued the California Department of Insurance to try to prevent the department from enforcing new auto insurance rating regulations.

The Association of California Insurance Companies, the American Insurance Association and the Personal Insurance Federation of California filed suit Wednesday in Sacramento Superior Court.

The groups represent more than 90% of drivers with auto insurance in California, and contend the regulations are unfair and would harm millions of California policyholders. The regulations will actually raise rates for 60% of California drivers so other motorists can pay less.