Judge throws out lawsuit on state auto rate rules

Siding with consumer groups and state regulators, a Sacramento judge threw out a lawsuit that challenged state rules requiring require auto insurers to base their rates primarily on drivers’ records instead of where they live.

Superior Court Judge Loren McMaster granted a summary judgment, ruling that regulations adopted last year by then-California Insurance Commissioner John Garamendi were consistent with Proposition 103, the rate regulation initiative adopted by state voters in 1988.

The American Insurance Assn., the Assn. of California Insurance Companies and the Personal Insurance Federation of California filed the lawsuit. They contended that where a driver lives was an essential factor in determining risk. They have not decided whether to appeal.