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California to toughen group discounts regulations in auto insurance

Published 12/23/2019, 08:09 PM
Updated 12/23/2019, 08:09 PM
© Reuters. Commuters navigate early morning traffic as they drive towards downtown in Los Angeles, California

(Reuters) - The California Department of Insurance on Monday proposed to reform how insurers offer group discounts based on occupation, education, and other factors, contending some the insurers' programs discriminate against people of low-income.

The move comes on the heels of an investigation carried out by the regulator that found that beneficiaries of group discounts were residents of California in areas with higher average incomes, higher levels of education, and predominantly non-Hispanic white population.

"The Department's historic investigation found that many insurance companies were effectively using group discounts to 'cherry-pick' members, giving some higher-income occupations a 'fast pass' while people of color and lower income motorists were left in the slow lane," said insurance commissioner Ricardo Lara, in a statement http://www.insurance.ca.gov/0400-news/0100-press-releases/2019/release101-19.cfm.

Latest comments

it Means higher premium for all. If in a bad place, they cant charge higher then theylll charge all higher.
Same reason it's not worth fighting for men and women to pay the same; they won't drop men, just raise it for women.
The proposal is good but the reasoning is stupid. Do the rich need extra discounts? No. But why is race even a point of discussion? Nobodoy is getting a discount because they are white. It is just completely irrelevant.
So pushing more of the tax base out by arbitrarily raising their cost of living, again..., when they are mobile enough to move to another cost-of-living friendlier state is a good proposal? "Rich" people have what they have cause they don't throw their money away without reason. This policy will be the staw that broke the camals back with some and they will leave, weakening the tax base and thus putting more of the burden on people making less than the people who left. We do not live in a vacuum where actions don't cause reactions. This idea is silly in every way but it's CA and too many people in this state "accept" that the government knows best without realizing they are the frog in the pot and the water is starting to boil. Leavingthebayarea daut com is real and the CA government is the reason for it.
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