(Food-Beverage-News.Com, October 26, 2012 ) San Francisco, CA -- California drivers will be able to keep a discount awarded for having auto insurance if Proposition 33 passes, says an industry official.
The discount is currently only available to drivers who remain with the same insurer. Proposition 33 would change that, Mike D’Arelli, executive director of the American Agents Alliance, wrote recently in the San Francisco Chronicle.
The proposed law would help California consumers by offering them options and encouraging the uninsured to obtain coverage, D’Arelli argued. If the law is approved, 85% of drivers who are insured would be able to negotiate a better deal with their insurer because they would have the option of changing carriers without losing the discount, he wrote.
Proposition 33 is one of 10 that voters will decide in the November election.
The law also would offer a “persistency” discount in some cases to consumers who have not kept up with payments. This would protect seniors, the unemployed, and people suffering illnesses, D’Arelli wrote.
A discount also would be available to drivers who have stopped maintaining insurance – for every year they were covered, they could receive 20% of the discount.
The law is intended to prevent high insurance rates. It includes a provision that rates can’t be excessive. All insurance rates would have to be approved by the state’s Department of Insurance and by the insurance commissioner.
Labor unions, firefighters, veterans groups, chambers of commerce and consumer advocates are supporting the measure, D’Arelli stated.
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