Here’s a bit of irony: A state body on July 14 passed new automobile insurance regulations that are to lower insurance rates in Los Angeles and San Francisco while raising rates in rural and suburban areas. That’s because insurance commissioner John Garamendi thinks it is unfair for urbanites to pay a risk premium for driving in cities.

Then on Wednesday, actor Daniel Baldwin was arrested after allegedly driving 80 miles an hour through West Side traffic and slamming his rented car into two parked cars, pushing a Hummer about 20 feet. And reportedly he was driving with a suspended license.

What was that logic again, Mr. Commissioner? City drivers don’t face extra risks?

The fact of the matter is, city drivers face far more risks. Stop-and-go freeway driving equals rear-enders. Busy intersections foment fender benders. And in Los Angeles, you never know when some poor stoner or rich guy racing a rare Ferrari on the Pacific Coast Highway might veer across your path.

Heck, you need to cross your fingers just to park in Los Angeles. There’s always the risk of vandalism, theft, gang graffiti. You never know when your parked Hummer could get slammed by some pampered celebrity.

These risks result in insurance claims. Insurance companies have a right to charge higher premiums to city drivers to offset those greater risks. Living near the Baldwin household could put you in a risk category all its own.

Here’s the background: Insurance companies historically set automobile premiums using a variety of factors, a big one being the ZIP code in which a customer lives. Drivers who live in congested urban ZIP codes generally pay higher insurance rates. (For two views on this topic, see the op-eds on the following page.)

Garamendi has proposed, and the state body recently approved, scrapping that system and forcing insurance companies to charge rates determined by the customer’s driving record, the number of years the customer has been licensed and the miles the customer drives.

It seems benign to base car insurance rates on one’s driving record and not on the ZIP code of residency. After all, it seems unfair to base insurance rates on a factor that’s not easily controllable, such as where we live. But many insurance rates are based on factors we can’t control. The old pay more than the young for life insurance. Men pay more than women.

Those of us who live in Los Angeles County could see auto premiums drop an average of about 13 percent. Motorists in Ventura and San Bernardino counties may see increases of a percent or three, but residents of more rural counties could get shocked with increases of 20 percent or 30 percent.

Angelenos may cheer. Hey, I like saving money as well as the next miser. Still, one must ask if it is fair to force motorists who live in rural areas far from Daniel Baldwin to subsidize those of us who live in high-hazard territories. Is that good business?

Of course, the back-story here may have less to do with complicated business than simple politics. Garamendi is running for lieutenant governor as a Democrat. By giving Democrat-leaning urbanites a price break and forcing Republican-leaning suburbanites and rural residents to pay up, Garamendi is effectively pandering to his base.

Charles Crumpley is editor of the Business Journal. He can be reached at [email protected].