Court Strikes Down Insurance Surcharge

A San Francisco Superior Court judge has invalidated proposals by two auto insurers to impose surcharges on uninsured motorists applying for coverage, according to the watchdog group Consumers Union. Consumers Union and the Southern Leadership Conference had jointly filed suit in October to block the Automobile Club of Southern California from raising rates 30% for uninsured drivers, claiming it violates rules in voter-approved Proposition 103. In a separate suit, the Proposition 103 Enforcement Project also challenged a similar rate increase proposed by Safeco Insurance. Consumers Union said it will now request that the state Department of Insurance force all other insurers to drop their uninsured motorist surcharges. Auto Club, Safeco and Insurance Department officials were not available for comment.