State Farm Auto Insurance, California

State Farm Auto Insurance allegedly charged California drivers an additional illegal fee for previously uninsured motorists, violating the California Insurance Code, which prohibits an insurance company from considering an individual's lack of prior insurance as a factor in determining auto insurance premiums and Good Driver discounts.

This action is in direct violation of California Insurance Code �1861.02(c). This landmark insurance initiative prevented insurance companies from discriminating against new drivers and previously uninsured motorists and consequently charging those people higher insurance rates.

It is alleged that the State Farm Auto Insurance company has been utilizing an inappropriate insurance surcharge on policies sold in California since 1997. It is reported that if the insurance company could not verify previous auto insurance, then the agent would place a surcharge on the insurer's premium, claiming that their accident record could not be properly verified.

California residents and policy holders of State Farm car insurance seek a class action lawsuit and compensation for damages on the basis that the insurance company was allegedly in violation of the California Insurance Code since at least 1997.

State Farm Auto Insurance Articles

Premium Pain: Are Insurance Companies Breaking the Law?
State Farm places a premium on honesty. A giant among insurance firms, the Bloomington, Illinois company employs nearly 70,000 people and boasts that they insure "more cars than any other insurer in North America."

Insurance Law Reforms: Putting Pressure on State Farm
It has been one year since the State of California Insurance Commission began its push for major insurance industry reform, charging that auto insurers such as State Farm Auto Insurance have been enjoying burgeoning profits, thanks to lower pay-outs and higher premiums.

State Farm And Other Companies Charged Accident Surcharge
State Farm Insurance California: Customers Paying Too Much
State Farm and other Auto Insurers: Sneaky Tactics
State Farm Car Insurance: California Overcharges
State Farm Accident Surcharge

Your State Farm Auto Insurance Complaint

If you were charged an additional fee on your auto insurance premium or auto insurance quote, you may qualify for damages or remedies that might be awarded in this class action case against State Farm Insurance. Please fill in our form on the right to submit your complaint and we will have a lawyer review your State Farm Auto Insurance case.

Posted by
Jennifer Ward
on April 9, 2016

I joined State Farm in January 2013 ($109/ monthly), in February 2013 I tapped the bumper of someone's car. When policy renewal time came in June 2013 my rates went up 80%, to $185/month. My jerk of an agent said "well we had to pay out $7000, we have to get that money somewhere".
To-Date I am still paying $156/month.
Is this surcharge hike legal? oh I even increased my deductible and deleted medical to have the $185/ month
I'm looking to change my car insurance again so decided best to really do research before I sign the dotted line.
Thanks!
Jennifer Ward