SACRAMENTO – Assemblymember Patty Berg (D-Eureka) is participating with a bipartisan coalition of Assemblymembers in requesting California Insurance Commissioner John Garamendi hold public hearings in rural and suburban areas of the state on a proposal being considered by Garamendi that would increase auto insurance rates on most drivers in those regions.

In a letter signed by Berg and 23 Assemblymembers, 10 Democrats and 14 Republicans, Garamendi was asked to “schedule hearings in all regions of the state, including those rural and suburban areas where rates could be expected to increase, so that persons in these areas may also have an opportunity to participate in an open public discussion of this proposal.”

The proposal would change the rating formula to reduce the calculation of cost factors related to a driver’s place of residence, and is supported by the cities of Los Angeles and San Francisco. Drivers who live in areas with less traffic, lower crime rates, and less propensity to litigate would likely see their rates increase. Drivers living in areas with higher accident, car theft, and litigation rates would likely see a reduction in rates.

“I am asking the Insurance Commissioner to have this issue be heard in rural areas,” said Berg. “The proposal should be heard in communities where it could hurt residents, and it is only right that public testimony should be taken from those residents. It is one-sided to collect public input only from the positively-impacted areas, and I am hopeful additional hearings will be held in rural areas.”

Garamendi has already held one hearing in Oakland and has scheduled four more hearings in urban areas, two in Los Angeles, and one each in Orange County and San Diego. These are regions where rates are projected to decrease if the proposal is approved. At this time, no hearings have been scheduled in rural or suburban areas where auto insurance rates would be increased.

“The Insurance Commissioner must hold hearings in all regions of the state so we can get an accurate portrayal of how people will be impacted. He must hear from all parties who may realize rate changes in order to make a fully informed decision,” concluded Berg.