California's average auto insurance rate is below the national average, the Consumer Federation of America says, attributing the difference to regulatory changes under Proposition 103. But Robert Hartwig, president of the Insurance Information Institute, says competition is a chief factor behind the decrease. Fraud-prevention efforts and strict implementation of drunken-driving laws also have helped keep the state's auto insurance rates in check, said PCI's Nicole Mahrt Ganley. "Proposition 103 did nothing to solve the underlying problem, but rather took attention away from rising costs and offered a quick fix in the form of premium reductions, Ganley said.

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