It's been more than 10 years since California voters revolted against the insurance industry by passing a ballot initiative that mandated a 20 percent rollback on auto insurance premiums. Since then, the nationwide rise of state regulations, heightened enforcement of safety laws and safety improvements in newer cars have combined to make the high-risk auto insurance market and kinder, gentler niche. The agency covers 11 western states including California. Today, most states have insurance commissioners whose offices keep auto insurance premiums in check, and conduct independent investigations into claims of unethical practices and price-gouging.
Regulators also work on behalf of the industry by taking on insurance fraud cases.
Strictly enforced seat belt laws in most states also reduce the risk of a serious injury accident, which keeps insurance claims down. This in turn affects annual premiums. High-risk motorists will still pay a higher premium that drivers not in that category, but those costs are more affordable than a decade ago. The penalties for driving under the influences also have increased three-fold in some states, making it more dangerous than ever to be nabbed. Automakers also have turned an eye toward safety in recent years.