PIFC Says State Supreme Court Ruling a Victory for All Good Drivers Throughout California

    SACRAMENTO, Calif.--March 28, 2001--The California Supreme Court's decision not to review an Appellate Court ruling concerning how insurance companies rate automobile insurance is a major victory for a vast majority of good drivers in California according to the president of the Personal Insurance Federation of California (PIFC).
    "The California Court of Appeals reviewed Proposition 103 and unanimously upheld the current auto rating factor regulations used by all auto insurers. In addition to the three mandatory factors required in Proposition 103 -- miles driven, safety record and years of driving experience -- insurers are allowed to factor in the accident frequency and severity in different regions of the state," explained Dan Dunmoyer, president of PIFC. "Thus, rates are based on actual cost in each region such as Beverly Hills and San Francisco, and good drivers in low-income rural areas of the state do not have to subsidize drivers in high-accident, high-income areas," Dunmoyer added.
    "A misguided request by the Foundation for Taxpayers and Consumer Rights and other petitioners to the Supreme Court asking for a hearing aimed at overturning the Court of Appeals ruling could have drastically raised insurance rates for good drivers in 51 of the state's 58 counties. We are pleased that the Supreme Court made the decision not to hear the petitioners' request," Dunmoyer concluded.
    The Personal Insurance Federation of California is an insurance trade association representing insurers that write nearly half of the auto, homeowners and earthquake insurance in the state.