SACRAMENTO – The following is a statement from California Insurance Commissioner John Garamendi:
“Today is an important day for drivers in California. The Office of Administrative Law (OAL) has approved my regulations requiring insurers to place more weight on how safely you drive than on where you live when setting rates. This was the hope of voters who passed the landmark Proposition 103 in 1988 to end Zip code discrimination. I commend the OAL and Governor Schwarzenegger for moving the approval process along expeditiously.
“Insurers will now have 30 days to submit new rating plans to my office that comply with the new regulations. From that point they will have a two-year phase-in period to fully implement their plans.
“As I stated earlier, today's action finally realizes the promise Californians sought when they voted for Proposition 103. Until now, insurers have been able to set rates based primarily on Zip codes or other optional factors, rather than on the three mandatory factors of Prop. 103: driving record, annual miles driven and driving experience. No more.
“I strongly encourage all insurers to follow the example of the Auto Club of Southern California in working with the Department to implement the regulations immediately, and in a manner that benefits their policyholders.”
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