If you purchased State Farm Auto Insurance in California between 1997 and 2002, you may have paid an illegal "accident surcharge" - for California policyholders only.
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 ï¿½1861.02(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.
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