Auto Insurance Reform on Primary Ballot in California
A controversial initiative affecting automotive insurance in California has been approved for inclusion in the June ballot by Secretary of State Debra Bowen.
The Continuous Coverage Auto Insurance Discount Act would allow insurance companies to offer discounts to drivers who have maintained their auto coverage on a continuous basis.
In a statement issued by Jim Conran, president of Consumers First, current inconsistencies in California law were cited as punishing good drivers who are looking to change insurers.
"That will change when this measure is passed," said Conran, "and will provide consumers the opportunity to shop around more more savings and with more options."
The measure would let insurers lower premiums for drivers who have kept continuos auto coverage even if they switch companies. Currently, discounts are only possible for drivers who maintain continuous coverage with the same company.
The proposed law would not change the requirement that insurance companies base their rates primarily on the driver's safety record, the number of miles driven yearly, and the degree of experience behind the wheel.
A group called Californians for Real Insurance Reform is opposed to the measure, arguing that it would invalidate a section of the state's Proposition 103, which prevents insurance companies from charging customers more for not having held auto coverage in the past.
In theory, the new law would allow insurers to raise premiums for drivers who have allowed their coverage to lapse for 90 days or more over the previous five-year period.
The same primary will include a contest for the Republican nomination for California governor between Insurance Commissioner Steve Poizner and the former CEO of eBay, Meg Whitman..
