LOS ANGELES (CBSLA.com) — A consumer advocacy group is calling on the California insurance commissioner to stop allowing automobile insurance companies to grant discounts for those who belong to professional organizations.
Under state law, car insurance companies must primarily base their rates on three factors: someone’s driving record, the number of miles they drive and the years of driving experience.
Consumer Watchdog founder Harvey Rosenfield says granting these special price breaks or elite memberships force other insurance members to pay more to make up the difference.
“So, as it turns out, middle-income and low-income people, who don’t have fancy jobs or didn’t get a fancy education, ended up subsidizing the rich folks who get these special breaks, and that is illegal in this case,” Rosenfield said.
Insurance Commissioner Dave Jones announced that he’d consider the petition once it’s been received.
“If he rejects this petition and refuses to take action our only other option is to sue the commissioner,” Rosenfield said.
Jones has 30 days to respond to the petition.