On June 8 California voters will cast their ballot for or against Proposition 17, the Continuous Coverage Auto Insurance Discount Act. In The Daily Californian article “Prop.17 Would Cut Auto Insurance Rates,” Mike D’Arelli says that passing Prop.17 would help increase competition and help California consumers get better rates from car insurance companies like Nationwide Insurance. Consumers could save hundreds of dollars each year if the auto insurance discount gets extended through Prop.17. The current driving law in California offers a discount to consumers who maintain car insurance through the same company, called the continuous coverage discount. But you lose that discount if you switch car insurance companies. So even though your coverage has been continuous, since it wasn’t with the same company the law says you lose the discount.
Prop.17’s change to the insurance law would modify it so that consumers still receive the continuous coverage discount even if they switch car insurance companies. As most Americans are trying to reduce expenses and save money wherever they can, the ability to shop around for cheap car insurance is really important. More competition in the car insurance market leads to lower rates for consumers. Prop.17 also includes a grace period of 90-days for consumers who stop coverage for a short time because they are unable to drive. Individual insurers can extend that grace period longer than that to maintain a consumer’s continuous coverage discount. There is also a military provision to ensure that men and women serving our country overseas will be able to maintain their discount. California voters will make a decision next week on Prop.17.
