Are CA automobile insurers obliged to notify customers in advance of a rate increase? If so, are they required to state the reason(s) for an increase?
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UPDATED: Jul 15, 2014
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Insurance Question from Playa del Rey, CA
Asked on 07/15/2014
Are CA automobile insurers obliged to notify customers in advance of a rate increase? If so, are they required to state the reason(s) for an increase? NULL
Answer given on July 17, 2014
In California, the auto insurance companies need to notify the auto insurance customer if their rates are being increased due to a driving record change. This can include a ticket or accident on the driving record. If you have more than one incident on your driving record then the rates can jump even more since the good driver discount is removed if you have more than one incident in the past three years.If an insurance company takes a general rate increase, across the board, or in certain areas, they do not need to notify you in advance. If you have a good insurance agent, they should advise you of the upcoming rate increase, but many won’t, in fear that you may shop around for less expensive insurance.If you are subject to the general rate increase, you should have time to shop your insurance once you get the premium notice. Most insurance companies issue renewals about 20-30 days before the renewal date which does give you time to shop. Just make sure the increase is not due to a ticket or accident.
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