Discount initiative for car insurance moves onward to November ballot

When 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…

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Auto Insurance in California – What you need to know

California auto insurance

California has stringent requirements when it comes to car insurance. As of 2006, drivers must provide proof of financial ability to cover the expenses related to a motor vehicle accident. Any uninsured vehicle will be impounded immediately and in addition to the expenses related to impounding the car, the driver will receive a large fine. Drivers are also financially liable for any accident in which they are involved. Providing proof of financial ability can take one of several forms in California. Drivers can provide the state of California with a…

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Fine for using mobile phone while driving increases to $528 maximum

Legislation created to increase the number of tickets issued for driving while using a handheld mobile phone and to increase the maximum fine to $528, has been sent to Governor Jerry Brown (D) from the California legislature. The California Senate has already given Senate Bill 28 its final approval by a 23 to 13 vote. The Assembly had previously voted for it by 51 to 21 in July. The bill will raise the current fines for using a hand held mobile phone while driving from $208 to $328 for the…

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Some California cities will continue with red light cameras

Various cities in Southern California have chosen to continue their commitment to enforcing red lights with cameras, regardless of L.A.’s decision to terminate the program. There was a unanimous vote in the Los Angeles City Council (13-0) in favor of ending the program after city officials deemed the payment of the fines for tickets issued by the cameras to be voluntary. This angered many motorists who had already paid their own tickets. Cities who remain committed to the program include Beverly Hills, where the program for red light cameras has…

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Mercury Insurance shows their approval for newly proposed auto discount in California

Mercury General Corp. has just announced its support of an auto insurance initiative comparable to last year’s Proposition 17, which was turned down by voters in June 2010. Supporters of this initiative are thrilled with Mercury’s backing, and are hoping that this second effort will make the difference. Insurance trade group, American Agents Alliance’s executive director, Mike D’Arelli, submitted the proposed initiative’s summary to the California attorney general’s office; taking the first step toward a vote on the initiative. Mercury had previously been a supporter of Proposition 17, having spent…

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American Agents Alliance initiative seeks discount for consumers maintaining car insurance

A California agents group, the American Agents Alliance, is moving forward with an initiative that would offer a discount to consumers who have persistently maintained their vehicle insurance, no matter their insurer or insurance company.  The current law states that this persistency discount is allowed only when the coverage has been continually kept with the same company.  However, the initiative sought by the Agents Alliance is comparable to Proposition 17 in 2010 – which lost by only 2 percent – and would have permitted consumers to carry their persistency discount…

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California Car Insurance: Sequoia offering new “Pay As You Go” insurance plan

Following the latest insurance trend sweeping the nation, Sequoia Insurance Co., one of the largest insurers in California, will begin offering a pay-as-you-drive auto insurance policy. Sequoia joins State Farm and Progressive in offering this particular policy, increasing the options available to California drivers. Progressive was the first to incorporate this concept into their coverage options after finding that fewer people were taking to the road in light of rising gas prices and other costs. Drivers interested in the coverage must first have a small device installed in their vehicles.…

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