Court Upholds Ban on Insurance Surcharge

A Superior Court Judge has upheld a state Department of Insurance ruling that prevents auto insurers from imposing surcharges on uninsured motorists applying for coverage. Insurance Commissioner Chuck Quackenbush has informed insurers that he will reject any new rate schedules filed with the department if they contain the surcharge. Last year, consumer and civil rights groups sued to prevent auto insurance companies from applying the surcharge and asked the Insurance Department to ban the practice, which is prohibited under voter-approved Proposition 103. More than 200 auto insurers will file new rate schedules by Tuesday that must comply with all provisions of Proposition 103, which requires insurers to base their rates primarily on a motorist’s driving record.