Discount initiative for car insurance moves onward to November ballot

California InsuranceWhen voters in California head to the ballot in November, they will also face the issue of a discount initiative for auto insurance, called the 2012 Automobile Insurance Discount Act, which was over 99 percent funded by the chairman of Mercury Insurance.

The initial sponsorship for the proposal was from the American Agents Alliance, a trade group. This initiative would allow motorists who change their insurers to obtain a discount if they have already had insurance on their vehicles.

The proposal had received nearly 505,000 signatures (a random sample of which was verified by the Secretary of State) from registered voters on its petitions, and its passage would add notable competition to the marketplace for car insurance. Ken May, the president of the alliance, said that “It rewards consumers for following the law and allows a new discount for continually having automobile insurance.”

Consumer Watchdog, an activist group based in Santa Monica, is leading the opposition to the initiative, saying that the proposal violates Proposition 103, the 1978 auto insurance reform initiative, and that it is unconstitutional. Proposition 103 requires that the premiums for auto insurance must be mainly based on the safety record of the driver, as well as the number of years driving experience that driver has, and the number of miles that are driven every year.

According to Consumer Watchdog, the discount initiative would work to penalize motorists who were previously uninsured, and that this behavior is unfair when they are purchasing California insurance policies that are required by law. Whether it passes or not, the best way to get the biggest discount on your insurance is to do your research and find the trusted car insurance that is right for you.

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