Auto Insurance Ballot Measure Revs Up - Consumer Watchdog

The Secretary of State’s campaign finance database shows insurance giant Mercury General Corp. on Friday put $1 million into Californians for Fair Auto Insurance Rates, the campaign committee it set up to back “The Continuous Coverage Auto Insurance Discount Act” for next year’s ballot. This doubles the company’s total previous contributions, made in June and September. Current law lets insurance companies offer a discount to their customers who maintain “continuous” coverage, but drivers can’t take their continuous coverage discount with them if they change insurance carriers. The proposed ballot measure would change this so the discount is portable even if motorists change insurance companies, something most other states already allow. ALLOWS AUTO INSURANCE COMPANIES TO BASE THEIR PRICES IN PART ON A DRIVER’S HISTORY OF INSURANCE COVERAGE. INITIATIVE STATUTE. Changes current law to permit insurance companies to offer a discount to drivers who have continuously maintained their auto insurance coverage, even if they change their insurance company, and notwithstanding the ban on using the absence of prior insurance for purposes of pricing. Establishes that lapses in coverage due to nonpayment of premiums may prevent a driver from qualifying for the discount. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: This measure would probably have no significant fiscal effect on state and local governments. “The continuous coverage discount will benefit all drivers who follow the law and maintain insurance coverage. This simple reform will provide lower rates for more California drivers by encouraging competition and will provide them with more options and choices in their insurance coverage,” campaign committee co-chair Jim Conran of Orinda, president of Consumers First and former director of the California Department of Consumer...

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