Prop 17 California Auto Insurance Rates Higher or Lower

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[Best Syndication News] The debate has been heating up between those for and against the Proposition 17 auto Insurance reform on the June 8th Ballot. Largely supported by Mercury General Corp. the measure wants to extend deep discounts to new customers that have had the same insurance for the past five years. The opponents to Proposition 17 see this as a way for auto insurance companies to tack on huge surcharges if it goes through.

According to the Consumer Watchdog group they have received a letter that Mercury Insurance Company asking for policyholders to vote in favor of proposition 17. In addition, Mercury has begun advertising on TV for the passage of Prop 17. The Consumer Watchdog points out that Proposition 17 would make it possible for insurance companies to raise the rates. They continue to say that there was a lawsuit that was filed against both the Attorney General and consumer advocates by Mercury because they wanted to prevent information regarding rate increases from being printed in the voter's guide. Mercury had lost the court battle and the voter's guide will read “will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage.”

The Consumer Watchdog group says that the proposition 17 would penalize drivers that have not yet driven with higher insurance costs. They say that if proposition passes it would force more people to drive without insurance because of the higher costs.

The current proposition 103 which is legislation that dictates that insurance companies can only offer discounts to their own customers. Proposition 17 wants to replace this legislation so that discounts can be offered to non-policy holders to lure them in. The goal of proposition 103 was to have auto insurance companies focus on offering policies to low cost insurance to uninsured drivers or new drivers and not to spend time taking customers from one company to move them to another.

The largest concern for those against Proposition 17 is that if passed it would make it legal to overcharge for car insurance policies, which might make this a bad deal and more expensive in the end.

By: Marlene Donor
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PROP 17 YouTube Video

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