Pressure groups try to cause the statutory auditor of the insurance to further limit the premium criteria

Pressure groups try to cause the statutory auditor of the insurance to further limit the premium criteriaSeveral community groups in California have filed a request with Commissioner for State Insurance Ricardo Lara to ban the use of profession and education as factors in setting premiums for motor insurance.

According to these community organizations – representing consumers, low-income workers and color communities – many car insurance companies operating in California raise up to 15% more people with lower-income and lower-skilled drivers. By charging these customers higher premiums, insurers can give discounts to doctors, lawyers, other well-paid professions and directors with a university degree, the groups claim.

The groups also state that the supplement is illegal Proposition 103 – California insurance repair law.

"These unfair allowances increase insurance costs for people who can least afford it," read the petition from the group. "They also stop the protection of civil rights to enable insurers to charge non-white, cheaper drivers more."

The organizations that signed the petition with Insurance Commissioner Lara include: United Policyholders, Public Advocates,, Neighborhood Assistance Corporation of America, La Casa de la Raza, KIWA (Korean Immigrant Workers Alliance), Courage Campaign, Consumer Watchdog, Consumers for Auto Reliability and Safety, Consumers Union of America and Consumer action.

News of the petition comes following the publication by Consumer Watchdog of its latest research, which showed that seven out of ten major car insurance companies in California cost more to directors without college degrees & # 39; s or higher paid professions.

Based on an analysis of online premium quotations, the study found that Farmers, GEICO, Progressive, AAA, Allstate, Liberty Mutual and Mercury surcharges range from 3.5% to 14.7%, based on the occupancy and education level of a customer.

On the other hand, the study showed that State Farm, USAA and AAA Northern California do not use education or occupation as assessment factors.

What do you think of the use of education and profession when determining premiums? An honest assessment of risk or a misplaced judgment? Leave a comment with your thoughts below.