Proposition 103 made California auto rates rest mainly on how a person drives. Insurance Code §1861.02(a) names three principal rating factors, in decreasing order of importance: - driving safety record - annual miles driven - years of driving experience Any other factor must be adopted by the commissioner by regulation and have a substantial relationship to the risk of loss. Location is not one of the three.

Good Driver Discount: under §1861.025, a qualified driver has been licensed for the previous three years, has had no more than one violation point in those three years, and has not been principally at fault in an accident causing injury or death in that period. One point is allowed; more than one disqualifies. Under §1861.02(b)(2), the Good Driver rate must be at least 20% below what the insured would otherwise pay for the same coverage. Example: $1,800 without the discount means at most $1,440. An insurer may not refuse to sell a Good Driver Discount policy to a person who qualifies (§1861.02(b)(1)).

Credit: the CDI outline states that a consumer credit report cannot be used as the basis of a decline to insure or as a premium factor in California. A credit report is not on the list of optional rating factors in 10 CCR §2632.5(d), and using a criterion without approval is unfair discrimination.

Driving record (MVR): under 10 CCR §2632.5(c)(1)(A), the insurer verifies the motor vehicle report for every listed driver at application, for each new driver when added, and no less often than every 36 months while the policy stays in effect. A renewal may not be rated on an MVR older than 36 months.

Adverse action: if an insurer declines an applicant based partly on a report bought from a consumer reporting agency, the federal Fair Credit Reporting Act (15 U.S.C. §1681m(a)) requires a notice that identifies the agency, explains the rights to a free report and to dispute it, and states that the agency did not make the decision and cannot give the reasons. California Insurance Code §791.10(e) separately requires the insurer to give the specific reasons for an auto declination in writing.