California Car Insurance Information and CA Auto Insurance Quotes

1861.01. Insurance Rate Rollback. (a) For any coverage for a
policy for automobile and any other form of insurance subject to this
chapter issued or renewed on or after November 8, 1988, every
insurer shall reduce its charges to levels which are at least 20%
less than the charges for the same coverage which were in effect on
November 8, 1987.
(b) Between November 8, 1988, and November 8, 1989, rates and
premiums reduced pursuant to subdivision (a) may be only increased if
the commissioner finds, after a hearing, that an insurer is
substantially threatened with insolvency.
(c) Commencing November 8, 1989, insurance rates subject to this
chapter must be approved by the commissioner prior to their use.
(d) For those who apply for an automobile insurance policy for the
first time on or after November 8, 1988, the rate shall be 20% less
than the rate which was in effect on November 8, 1987, for similarly
situated risks.
(e) Any separate affiliate of an insurer, established on or after
November 8, 1987, shall be subject to the provisions of this section
and shall reduce its charges to levels which are at least 20% less
than the insurer's charges in effect on that date.



1861.02. (a) Rates and premiums for an automobile insurance policy,
as described in subdivision (a) of Section 660, shall be determined
by application of the following factors in decreasing order of
importance:
(1) The insured's driving safety record.
(2) The number of miles he or she drives annually.
(3) The number of years of driving experience the insured has had.

(4) Those other factors that the commissioner may adopt by
regulation and that have a substantial relationship to the risk of
loss. The regulations shall set forth the respective weight to be
given each factor in determining automobile rates and premiums.
Notwithstanding any other provision of law, the use of any criterion
without approval shall constitute unfair discrimination.
(b) (1) Every person who meets the criteria of Section 1861.025
shall be qualified to purchase a Good Driver Discount policy from the
insurer of his or her choice. An insurer shall not refuse to offer
and sell a Good Driver Discount policy to any person who meets the
standards of this subdivision.
(2) The rate charged for a Good Driver Discount policy shall
comply with subdivision (a) and shall be at least 20% below the rate
the insured would otherwise have been charged for the same coverage.
Rates for Good Driver Discount policies shall be approved pursuant
to this article.
(3) (A) This subdivision shall not prevent a reciprocal insurer,
organized prior to November 8, 1988, by a motor club holding a
certificate of authority under Chapter 2 (commencing with Section
12160) of Part 5 of Division 2, and which requires membership in the
motor club as a condition precedent to applying for insurance from
requiring membership in the motor club as a condition precedent to
obtaining insurance described in this subdivision.
(B) This subdivision shall not prevent an insurer which requires
membership in a specified voluntary, nonprofit organization, which
was in existence prior to November 8, 1988, as a condition precedent
to applying for insurance issued to or through those membership
groups, including franchise groups, from requiring such membership as
a condition to applying for the coverage offered to members of the
group, provided that it or an affiliate also offers and sells
coverage to those who are not members of those membership groups.
(C) However, all of the following conditions shall be applicable
to the insurance authorized by subparagraphs (A) and (B):
(i) Membership, if conditioned, is conditioned only on timely
payment of membership dues and other bona fide criteria not based
upon driving record or insurance, provided that membership in a motor
club may not be based on residence in any area within the state.
(ii) Membership dues are paid solely for and in consideration of
the membership and membership benefits and bear a reasonable
relationship to the benefits provided. The amount of the dues shall
not depend on whether the member purchases insurance offered by the
membership organization. None of those membership dues or any
portion thereof shall be transferred by the membership organization
to the insurer, or any affiliate of the insurer, attorney-in-fact,
subsidiary, or holding company thereof, provided that this provision
shall not prevent any bona fide transaction between the membership
organization and those entities.
(iii) Membership provides bona fide services or benefits in
addition to the right to apply for insurance. Those services shall
be reasonably available to all members within each class of
membership.
Any insurer that violates clause (i), (ii), or (iii) shall be
subject to the penalties set forth in Section 1861.14.
(c) The absence of prior automobile insurance coverage, in and of
itself, shall not be a criterion for determining eligibility for a
Good Driver Discount policy, or generally for automobile rates,
premiums, or insurability. However, notwithstanding subdivision (a),
an insurer may use persistency of automobile insurance coverage with
the insurer, an affiliate, or another insurer as an optional rating
factor. The Legislature hereby finds and declares that it furthers
the purpose of Proposition 103 to encourage competition among
carriers so that coverage overall will be priced competitively. The
Legislature further finds and declares that competition is furthered
when insureds are able to claim a discount for regular purchases of
insurance from any carrier offering this discount irrespective of
whether or not the insured has previously purchased from a given
carrier offering the discount. Persistency of coverage may be
demonstrated by coverage under the low-cost automobile insurance
program pursuant to Article 5.5 (commencing with Section 11629.7) and
Article 5.6 (commencing with Section 11629.9) of Chapter 1 of Part 3
of Division 2, or by coverage under the assigned risk plans pursuant
to Article 4 (commencing with Section 11620) of Chapter 1 of Part 3
of Division 2. Persistency shall be deemed to exist even if there is
a lapse of coverage of up to two years due to an insured's absence
from the state while in military service, and up to 90 days in the
last five years for any other reason.
(d) An insurer may refuse to sell a Good Driver Discount policy
insuring a motorcycle unless all named insureds have been licensed to
drive a motorcycle for the previous three years.
(e) This section shall become operative on November 8, 1989. The
commissioner shall adopt regulations implementing this section and
insurers may submit applications pursuant to this article which
comply with those regulations prior to that date, provided that no
such application shall be approved prior to that date.