Legislation that would allow insurers to more accurately base auto insurance premiums on how many exact miles a motorist drives, passed in the California Senate Appropriations Committee.I just got a phone call that one of our local H.O.G. members heard that the state of California is try to pass a law that will allow insurance company to flex your rate by the amount of miles you put on your bike. So one year you stay home and your rate is one price, then the next year you head out to Daytona or Sturgis put on an extra 3 to 4 thousand miles and watch your rates sky-rocket…this is not cool. So I looking into it and this am what I found.
Pulled from the Insurance Journal.com
Proposition 103 requires insurers to set automotive insurance rates and premiums using specified factors, including the number of miles the insured drives annually and any factors the commissioner may specify that have a substantial relationship to the risk of loss. Assembly Bill 2800, sponsored by Jared Huffman, D-San Raphael, in determining how many miles a person drives, would allow insurers to apply different rating factors for voluntary insurance-verified annual mileage and applicant-estimated annual mileage.
The Association of California Insurance Companies said it supports the bill.
However, consumer advocacy group Consumer Watchdog said, "AB 2800 would force drivers to choose between fair insurance rates and protecting their privacy."
"No driver should have to make that choice," said Carmen Balber for the group. "Where I drive, when I get there and whether I stop on the way is not the business of my insurance company, or any other corporation who wants to place eyes in my car."
According to the group, nothing in the bill prohibits insurance companies from tracking whatever information they choose -- including speed, acceleration, location and time of day, in addition to mileage. The bill allows insurance companies to give discounts for driver participation in a tracking program, but does not mention discounts for drivers who actually reduce their mileage, the organization said.
"Insurance companies fought mileage-based insurance rates for 18 years after the voters mandated them in Proposition 103," Balber said. "The industry didn't change its mind overnight. Insurers back this plan because it will get their spyware into Californians' cars while doing nothing to make them more closely tie insurance rates to how far a motorist drives."_is this all we have?