California’s Proposition 33, officially titled the 2012 Automobile Insurance Discount Act, has had firm support by not only consumer advocates, but also by insurance agents and brokers who want to be able to find even better insurance prices and policies for their customers.
This new proposition, assigned by the Secretary of State’s office, promises to lower prices and increase competition among insurance companies.
The current law provides a discount for Californians who obey the law and maintain car insurance, but only if they stay with the same car insurance carrier. Prop 33, however, allows drivers to shop this discount to competing car insurance companies.
The proposition also protects Californians who have lost employment by allowing them to keep their loyalty discount even if they aren’t able to pay their insurance bills for up to 18 months and also allows members of the military to maintain their discount even if they needed to cancel their insurance policy while they are overseas. In addition, if a California resident can’t afford to pay their car insurance premiums for any reason, their loyalty discount will remain intact for up to 90 days under the guidelines of Proposition 33.
The success of Prop 33 looks promising as it has a diverse base of supporters ranging from leading consumer groups, chambers of commerce, veterans, republican and democratic leaders, and labor groups.