Legal Question in Insurance Law in California

Can insurance company do this?

For four years I was working for a

company driving a van of students

to events. I have had a spotless

driving record, until I got a seat belt

violation in my own car. I failed to

appear, believing that the

payments I started to a collection

agency absolved me of the need.

My license was suspended and

when I found out, I appeared in

court and had it re-instated.

The carrier for my company raised

its premiums for insuring me by

380%, causing the company to

terminate me. As California doesn't

even assign a point to the

violation,the rate increase seems

arbitrary, capricious and excessive.

What I want is my job back. What

recourse to I have? My employer

wants to retain me if only the rates

weren't raised.


Asked on 9/14/08, 9:11 pm

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Can insurance company do this?

Most employees are "at will", which means they can be dismissed for any non-discriminatory reason -- or even for no reason at all. An increase in the cost of insuring you seems like a perfectly legitimate reason to let you go. Unless the company had promised you job security, there is probably nothing you can do about this.

Btw, the insurance rates probably went up because your license was suspended, not due to the seatbelt violation. It is reasonable for your employer's insurer to insist that the company's drivers be licensed at all times and to increase the company's premiums if it fails to meet this requirement.

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Answered on 9/15/08, 3:24 pm
Steven Murray Steven W. Murray, APC

Re: Can insurance company do this?

Your employer sounds like he is being reasonable. Why not ask him if you can discuss this with his broker/agent and see if they can resolve this with the insurer. They have the contacts with the insurer's underwriters and may be able to resolve this, or perhaps even change insurers so your employer and you both get what you want.

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Answered on 9/15/08, 3:33 pm


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