San Diego Injury Lawyer Blog

The California Department of Insurance has ordered Allstate Insurance Company, who insures about 10% of all California cars, to reduce their rates by 15.9%.

DOI has insisted that insurers adhere to the key rate factors in determining the appropriate risk that an insured will be involved in an automobile accident: a person's driving record, the number of years behind the wheel, and the number of miles driven per year.

"It was very clear that they were charging too much," said Douglas Heller, executive director of the Foundation for Taxpayer & Consumer Rights, the Santa Monica-based advocacy group that successfully championed Proposition 103 in 1988. The voter-approved initiative turned insurance into a highly regulated business, similar to power companies and other public utilities.

DOI is also attacking Allstate for excessive charges for homeowners' insurance, which provide resources to pay premises liability claims.

It is anticipated that the rate ruling will force other insurers to reduce their rates as well.