Companies charged to inflate premiums earlier uninsured drivers

Three auto insurance companies, that the violation of a law on public insurance, the reform allegedly excessive some clients who have not yet secured, after an action brought by a group of consumers.

He is Proposition 103 Enforcement Project, a watchdog of Santa Monica in 1988 voters adopt the Insurance Reform Act. The group said insurance premiums calculated in a manner not of the California Department of Insurance.

The costume, we Friday in the Los Angeles County Superior Court, names such as Geico accused, which is headquartered in Washington, DC; Safeco, which is headquartered in Seattle, and the Automobile Association of Southern California, whose headquarters east to Santa Ana.

Geico and spokesman for Safeco said, businesses have no comment, while Carol Thorp of the automobile club said the company “puzzled” by the trial, because 103 can offer many factors weigh in setting premiums, including the assurance of security.

The complainant, a division of consumer non-profit Advocacy Group Foundation for Taxpayer and Consumer Rights, is the neutralization of the increase in insurance premiums for automobile insurance for drivers, lack of insurance coverage auto. The group said, insurers have reload the category of drivers increased contributions, even if some drivers would be considered safe for good drivers Prop. 103 discount.

Pamela Pressley, a spokesman for the group of consumers, said Prop. 103, for other reforms, requires that consumers are in the insurance market so as not to penalize the lack of insurance coverage before.

She said, the practice of collecting fees at higher prices in this category of people, compared to previously insured the driver of conduct with the same story, is a violation of Prop. 103. In some cases, premiums for previously uninsured drivers, have been doubled, “said Pressley.

She said that the three accused are the only group of insurers, there is overloading of these pilots, but there may be others.

In Santa Ana, automotive Club Thorp said: “We are in full compliance with Prop. 103. All our comments were adopted by the Division of Insurance.”

According to the Ministry of insurance, the Automobile Club of Southern California, California 8.3 percent of the market for auto insurance, Safeco, while 1.5 per cent and 1.1 per cent Geico. The government estimates that 20 percent of drivers are not insured.

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