April 5, 2017
Dave Jones, Insurance Commissioner
California Department of Insurance
300 Capitol Mall, Suite 1700
Sacramento, CA 95814
Re: Request for investigation into auto insurance pricing practices in California
Dear Commissioner Jones,
Consumers Union, the policy and mobilization division of the nonprofit Consumer
Reports, requests an investigation into the pricing practices of auto insurers in California
in light of the findings of a joint investigative report released today by Consumer Reports
and ProPublica, entitled Car Insurance Companies Charge Higher Rates in Some
Minority Neighborhoods, available at CR.org/carinsuranceinvestigation.
California’s insurance regulations are meant to ensure that consumers are primarily
priced by how they drive, with policy prices reflecting the risk they pose. The Consumer
Reports – ProPublica investigation uncovered disparities in auto insurance prices
between minority and non-minority neighborhoods, disparities that are wider than
average risk can explain. The report found eight companies doing business in California
that were charging risky minority zip codes more than 10% higher on average for liability
premiums than similar non-minority zip codes. It is unclear why these pricing disparities
are occurring.
We understand you have already provided comment on the Consumer Reports ProPublica analysis and findings, but we urge your office to undertake its own
investigation into the way insurers are setting auto insurance prices in California. Many
Californians are already struggling to make ends meet without the extra burden of
unfairly high auto insurance rates.
Thank you in advance for your prompt attention to this important consumer issue. If you
have any questions, please contact me at ctetreault@consumer.org or 415-431-6747.
West Coast Office
1535 Mission Street
San Francisco, CA 94103-2512
(415) 431-6747
www.consumersunion.org

 Sincerely,



Christina Tetreault
Staff Attorney
Consumers Union