News COVID-19

Watchdog Group Calls on Insurance Commissioner to Suspend Rate Increases

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April 24, 2020—Consumer Watchdog has called on the insurance commissioner in California, Ricardo Lara, to suspend all auto insurance rate increases through September 1, according to a press release from Consumer Watchdog.

Californians are not driving due to COVID-19 stay-at-home orders, and accidents had been reduced by at least half as of April 11.  A bulletin issued by Insurance Commissioner Lara on April 13 ordered auto insurance companies to refund premiums to consumers to reflect this reality for March and April.

However, at least 21 California auto insurance companies are still requesting rate increases, according to the Department of Insurance's website (www.insurance.ca.gov) and according to the press release.

The group noted that the rates were set on pre-pandemic projections of accidents, losses and claims that no longer reflect the shutdown in the state.

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