An auto rate initiative successfully qualified for the November ballot and it will allow auto insurers to consider a motorist's coverage history in setting rates for new customers. In an update, the California Republican Party has officially voted to endorse this measure. The Bee points out that “The measure is almost identical to Proposition 17, a failed 2010 initiative bankrolled by insurance giant Mercury General. The company has not contributed to this year's version.”
The Alliance of Insurance Agents & Brokers is behind this year’s initiative. Opponents of the effort suggest customers with lapses in coverage will be discriminated against and will pay higher rates.
Here is the official ballot title and summary:
Changes current law to permit insurance companies to set prices based on whether the driver previously carried auto insurance with any insurance company. Allows insurance companies to give proportional discounts to drivers with some prior insurance coverage. Will allow insurance companies to increase cost of insurance to drivers who have not maintained continuous coverage. Treats drivers with lapse as continuously covered if lapse is due to military service or loss of employment, or if lapse is less than 90 days. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Probably no significant fiscal effect on state insurance premium tax revenues.
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