In a letter to Insurance Commissioner John Garamendi signed by a bipartisan group of Assemblymembers from rural and suburban districts, including Berg, he was called upon “not to approve changes that would result in rate increases for drivers in our districts that are unfair or are not cost-based.”

The letter further stated that, “The rates charged for auto insurance should be based on the actual cost of providing the insurance. Drivers in lower-risk areas of the state where claim frequency is less should not be required to subsidize drivers in higher-risk areas.”

A study commissioned by the Personal Insurance Federation of California and the Association of California Insurance Companies, using data from four large California private passenger automobile insurance companies, found that 63 percent of so-called “good drivers” (drivers that meet the California good driver criteria) would receive rate increases. Meanwhile, 56 percent of California “bad drivers” (drivers who fail to meet good driver criteria) would receive rate decreases. Drivers in Del Norte, Humboldt, Lake, Mendocino, Sonoma, and Trinity Counties could see rates increase up to 25% while some drivers in Los Angeles County would see rates drop as much as 40%.

“This is about protecting the auto insurance premiums of my constituents and all drivers in lower-risk areas,” said Assemblymember Berg. “Drivers in lower-risk areas should not be forced to subsidize drivers in higher-risk areas.”

Garamendi will hold a hearing on the proposal on Thursday December 4, 2003 at the State Office Building in Oakland, 1515 Clay Street. Berg recommends that drivers in the 1st Assembly District concerned about the proposed rate adjustment call the Insurance Commissioner at (916) 492-3500.