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Friday, Mar 29, 2024

Judge to Let Car Insurance Policy Stand

A Superior Court judge said Thursday that she plans to reject an injunction questioning the legality of a policy that determines auto insurance rates by where a person lives. Insurance Commissioner John Garamendi earlier this year proposed the change, which would force insurers to place less of an importance on a driver’s address and more on his or her driving record, driving experience and number of miles driven. Garamendi said the longstanding policy based on a driver’s ZIP code was unfair and penalized good drivers who lived in certain areas. Three insurance trade groups sought to bar the policy change, a charge that Sacramento Superior Court Judge Loren McMaster did not accept. Insurance companies have to submit new policy standards by Monday. AAA of Southern California and USAA have already done so.

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