For Release: August 16, 2006
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Insurance Commissioner John Garamendi Calls Court's Ruling on "Good Driver Reforms" A Victory for All California Drivers
The 3rd District Court of Appeal on Wednesday refused to overturn a Superior Court ruling that required insurers to comply with the Commissioner’s Good Driver Reform regulations.
SACRAMENTO – Insurance Commissioner John Garamendi on Thursday hailed a District court’s decision to uphold an earlier ruling that rejected an insurer-sponsored effort to stop the Commissioner’s Good Driver Reform regulations. “Once again the courts have ruled that insurers must comply with the will of voters who decided in 1988 that how safely you drive is more important than where you live in the pricing of auto insurance,” said the Commissioner.
Insurers must now submit new rating plans that comply with the regulations this week. Two large insurers, the Automobile Club of Southern California, and USAA Insurance, submitted filings well before the deadline. Both gave policyholders meaningful reductions in rates, while simultaneously implementing the new regulations’ requirements.
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Insurance Commissioner John Garamendi Calls Court's Ruling on "Good Driver Reforms" A Victory for All California Drivers
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