Spotlight on 'Green' Auto Insurance in California Advances Voter Mandate for Mileage-Based...

Spotlight on 'Green' Auto Insurance in California Advances Voter Mandate for
Mileage-Based Insurance Rates, Says Author of Insurance Reform Proposition 103

SANTA MONICA, Calif., Aug. 27 /PRNewswire-USNewswire/ -- Insurance
Commissioner Steve Poizner and Assemblyman Jared Huffman (D-San Rafael)
announced draft regulations on "pay-as-you-drive" insurance today that are
intended to reward those who drive fewer miles each year, a requirement in
California under insurance reform initiative Proposition 103.
"Regulations that implement Proposition 103's mandate that insurance rates
reflect a driver's mileage will lower auto insurance premiums, particularly
when the high cost of gasoline is encouraging people to drive less," said
Harvey Rosenfield, the author of Proposition 103 and founder of Consumer
Watchdog. "They will also give consumers a financial incentive to carpool and
promote mass transit and other transportation technologies that can reduce the
impact of driving on our environment and our costly reliance on oil. Assembly
Member Jared Huffman's attention to this important issue, along with other
organizations, led to today's announcement. We also applaud Commissioner
Poizner's prompt action in drafting the proposed regulations."
California voters approved Prop 103 twenty years ago, and required that
annual miles driven be the second-most important factor in setting auto
insurance premiums (the first is driving safety record). Consumer Watchdog
fought the insurance industry in court and at the Department of Insurance for
eighteen years to uphold that mandate. Regulations finally enacted in 2006
required all California auto insurance companies to cease basing auto premiums
primarily upon ZIP Code and phase in the good driver system so that they fully
comply with the law by July 14, 2008. The Department of Insurance is currently
reviewing the compliance plans filed by insurance companies in July.
Consumer Watchdog Will Seek "Environmental Seal of Approval" for Insurance
Company Plans
Consumer Watchdog, the leading advocacy group on insurance matters before
the Department of Insurance, said it will be an active advocate in the
Department hearings on the proposed regulations in the months to come. The
group said it will seek reduced rates for low-mileage drivers, ensure that
rates are consistent and fair and that drivers' privacy is protected, and urge
the Department of Insurance to establish an "Environmental Seal of Approval"
to encourage insurers to closely tie mileage reductions to cheaper insurance
rates.
"Lawmakers and regulators have stepped up to the plate to help
Californians 'green' their insurance policies and save people money," said
Carmen Balber, an advocate at Consumer Watchdog. "Now insurance companies
must do their part by giving drivers real savings when they drive less."
AB 2800, legislation authored by Assembly Member Huffman and backed by
Environmental Defense Fund, the Natural Resources Defense Council and
insurance lobbying groups, initiated the attention that led to today's
announcement of the proposed "pay as you drive" regulations. The legislation
has been withdrawn.
SOURCE Consumer Watchdog

Carmen Balber of Consumer Watchdog, +1-310-403-0284, Doug Heller,
+1-310-392-0522 ext. 309