The next step in this Proposition 103 struggle will likely be a review of how the rates are set by California Insurance Commissioner Harry Low.
Insurance is based on predictability.
Everyone in the suburbs will be subsidizing those in the cities. The California Supreme Court is mulling over whether to consider overturning a decision saying that insurance companies can use where you live to determine your auto insurance premiums. The dispute stems from Proposition 103, a state insurance regulation that was passed in 1988 with conflicting interpretations that have led to more than three years of court battles. Allstate Insurance Co. The rate increase, which Allstate says is due to increased accident frequency and claim costs, will take affect by mid-May. In addition, insurers can look at where you live, the kind of car you drive, marital status, and whether or not you are a smoker, but these cannot carry as much weight as the three main factors.