Auto Club of Southern California Files Rate Application in Support of California’s Sustainable Insurance Strategy

The Auto Club of Southern California today announced that it has filed rates consistent with the California Department of Insurance's Sustainable Insurance Strategy, reinforcing the organization's long-standing commitment to its Southern California members, communities, and a stable insurance marketplace.

"As a company founded in California more than a century ago, we believe helping to ensure insurance sustainability is the right thing to do for our members and for the future of our state," said Mike Mohamed, Auto Club Senior Vice President, Insurance Operations.

Serving Californians for More Than a Century

Founded in 1900, the Auto Club of Southern California has been serving members for more than 125 years. The Auto Club began issuing auto insurance policies in 1912 and expanded into the homeowners insurance market in 1984. Today, Auto Club of Southern California is a regional insurance carrier proudly serving Southern California residents.

Approximately 61% of households in Southern California include an AAA member, reflecting the trust that generations of Californians place in the Auto Club to provide valuable services, reliable insurance products, and strong advocacy for motorists and communities.

Commitment to Distressed Communities and Market Stability

The Auto Club of Southern California never stopped writing new business, even amid increasing climate-related and economic challenges, and is committed to continuing doing so in support of the Sustainable Insurance Strategy. "We diligently support the Department of Insurance's efforts to stabilize California's insurance market," said Mohamed.

Investing in California's Future

Auto Club of Southern California remains deeply invested in the state as both an insurer and an employer, supporting thousands of California families through stable jobs and essential services. The organization serves Southern Californians through:

• 81 branch offices
• More than 850 sales agents
• Over 8,500 employees across the region

With a strong physical presence and deep community roots, the Auto Club continues to deliver superior service to its insured members while advocating for motorists and supporting local communities.

Background: California's Sustainable Insurance Strategy

The California Department of Insurance's Sustainable Insurance Strategy is designed to stabilize the state's insurance market amid growing wildfire risk, climate impacts, rising construction costs, and reinsurance pressures. The strategy encourages insurers to remain in and re-enter the California market, expand coverage in distressed and high-risk areas, reduce reliance on the FAIR Plan, and promote a financially sustainable, consumer-protective insurance system.

By filing rates under the Sustainable Insurance Strategy, insurers can better align pricing with actual risk and costs, strengthen financial stability, and continue writing new business-particularly in wildfire-impacted and underserved communities. These filings support continued participation in the market, helping ensure broader coverage availability and stronger consumer protections for Californians.