Current law lets insurance companies offer a discount to their customers who maintain continuous coverage, but drivers cant 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.
The official title and summary:
ALLOWS AUTO INSURANCE COMPANIES TO BASE THEIR PRICES IN PART ON A DRIVERS 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 Affairs, said in a news release today. It encourages California drivers to not only keep their coverage current, but to go out and find the best rate without being forced to lose a discount. Consumers should not be penalized and lose discounts for maintaining coverage just because they change their insurance company" [Courtesy of http://www.ibabuzz.com/politics/2009/10/27/auto-insurance-ballot-measure-revs-up/].
