Studies Find Automatic Braking Can Cut Crashes Over 40%

  Two new U.S. studies show that automatic emergency braking can cut the number of rear-end automobile crashes in half, and reduce pickup truck crashes by more than 40%. The studies released Tuesday, one by a government-auto industry partnership and the other by the insurance industry, each used crash data to make the calculations. Automatic…

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Insurers Warn California’s Inaction Threatens Auto Policies

Top U.S. insurance companies and associations say California is risking a crisis in the nation’s largest automobile insurance market by refusing to approve any rate increases for more than two years, since the start of the coronavirus pandemic. The companies already are cutting back and say they can’t continue operating at a loss while Insurance…

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Auto Loss Costs Not Coming Down; Bigger Rate Hikes Ahead: Allstate CEO

  Higher auto loss costs are here to stay, according to the leader of Allstate, who also said that his company will be pushing up auto insurance prices higher, and at a faster pace, for the balance of the year. Speaking at the Barclays Global Financial Services Conference on earlier this month, Allstate President and…

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California Wildfires Lead to Evacuations Amid Heat Wave

California wildfires erupted Wednesday in rural areas, racing through bone-dry brush and prompting evacuations as the state sweltered under a heat wave that could last through Labor Day. Gov. Gavin Newsom declared a state of emergency with temperatures expected to be 10 to 20 degrees above normal, and urged people to help reduce demand for…

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$12M in Emergency Funding for Death Valley Flood Repairs

    Nearly $12 million has been made available to the National Park Service to repair flood damage to roads in Death Valley National Park, the U.S. Department of Transportation’s Federal Highway Administration said. Most roads in the desert park have been closed since runoff from thunderstorms on Aug. 5 wiped out major sections of…

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California Insurance Commissioner: Mercury Steered ‘Good Drivers’ Toward Higher-Priced Policies

California Insurance Commissioner Ricardo Lara announced a legal action on Monday against Mercury Insurance for reportedly violating consumer protection laws, including selling Mercury’s highest-priced policy to “good drivers” instead of the lowest-priced policy for which good drivers qualify. Lara’s action follows a California Department of Insurance investigation that reportedly found numerous areas where Mercury’s business…

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California Assembly Bill 5- AB5

KEY TAKEAWAYS California Assembly Bill 5 (AB5) extends employee classification status to some gig workers. Under AB5, companies must use a three-pronged test to prove workers are independent contractors, not employees.1 AB5 was designed to regulate companies that hire gig workers in large numbers, such as Uber, Lyft, and DoorDash. On Sept. 4, 2020, the…

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Medical Marijuana Legalization Linked To Reduced Drunk Driving And Safer Roads, Study On Auto Insurance Data Suggests

Auto insurance premiums decreased in states following the legalization of medical marijuana, according to a new study that builds on existing research signaling that cannabis reform is associated with reduced risk of dangerous driving—contrary to prohibitionist arguments. The study, published this month in the journal Health Economics, analyzed insurance data from 2014 to 2019. It…

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