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More on Changes to Your Auto Insurance

January 12, 2006 by Jonathan Stein

I came across the BEST story I have read about the competing interests with regard to changes to auto insurance. The story is by Erin Sherbert of the Stockton Record.

Ms. Sherbert lays out Garamendi’s position on why he wants to change the way insurance rates are calculated by making insurers not use zip codes. Basically, he does not think it is fair. She also spells out the reason that insurers say this is bad for Californians. They estimate that up to 60 percent of Californians will have their rates increase because of this change. So, they are circulating an initiative for signature.

My take on this is that Garamendi is wrong. Of cousre, why would a guy who does not have a degree in insurance and who has never had a job in insurance want to listen to someone who makes his living with this? The insurance industry, however, should drop their initiative. I do not think it will pass because they will overreach and try to undo Prop. 103.

Thanks for the great article Ms. Sherbert.

Categories: Auto Insurance, Claims, Law

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