Sacramento, Calif. February 11, 2009 – The Alliance of Insurance Agents & Brokers announced today that it strongly supports Prop. 17 on the June 2010 ballot both organizationally and financially because it’s good policy and it’s good for consumers.
California Proposition 17 is on the June 8, 2010 ballot will allow insurance companies in the state to give what are known as “persistency discounts,” or discounts for those who have had continuous auto insurance coverage, even if they change their insurance company.
“Passage of Proposition 17 means more competition in the auto insurance marketplace, more choices for consumers and lower rates,” said Michael D’Arelli, executive director of the Alliance. “An additional discount which lowers auto premiums is exactly what is needed in this economy.”
Today, more than 80% of California drivers maintain auto insurance coverage and would qualify for this discount. However since the discount is not portable, they lose those savings if they switch to a different insurance company. In effect, responsible drivers who have maintained continuous insurance coverage are surcharged if they switch companies. Prop. 17 levels the playing field so every insurance company can offer the same discounts as its rivals and compete head to head for California’s auto insurance customers.
Continued D’Arelli, “Proposition 17 is good for consumers, good for the auto insurance market, and good policy for California.
“Opponents’ attacks against Prop. 17 are disingenuous, anti-consumer and a desperate attempt to avoid talking about an expanded discount that will benefit more than 80% of California drivers.”
Proposition 17 is supported by consumer groups, agents, business and taxpayer organizations from across the state.
Visit the Alliance of Agents and Brokers here.