Insurer Won’t Base Rates on ZIP code

Where someone lives will no longer play a role in how much the Automobile Club of Southern California charges for car insurance. The insurance company will now base rates primarily on a motorist’s driving record, driving experience and number of miles driven. Insurance companies have historically used marital status, gender and ZIP code in determining how much they charge for insurance. The changes will result in a decrease of $134 million in auto insurance rates for nearly 1 million California drivers.