Change your Auto Insurance, Keep Your Discounts in California?

If you live in California and are currently looking for free insurance quotes, you might want to wait until Proposition 17 has been voted on. This landmark proposition would allow drivers to keep any loyalty discount that they may have earned with their current insurance company even if they choose to switch insurance providers.

Be advised, though, that opponents to the proposition are concerned that those who do not currently have auto insurance may face surcharges of up to 70%. This would include college students, military personnel who have no need of a vehicle and people who have simply taken the option of putting the car in the garage and using public transportation instead, so maybe getting those free insurance quotes now isn’t such a bad idea, after all.

What it really comes down to is that, whilst the legislation would allow insurance providers to offer discounts to drivers who have qualified for ‘loyalty discounts’ with other companies by maintaining their coverage, it will also allow them to increase rates for those without continual coverage and possibly disqualify those with lapses due to non-payment from receiving any discount.

The Proposition 17 is being supported by the Alliance of Insurance Agents and Producers because, they claim, it creates competition between insurance providers. Opponents, such as Jamie Court, the head of consumer watch are more concerned with the clauses which allow insurance companies to increase rates, which, given that the money behind the proposition is coming from Mercury Insurance, may be a valid concern.

Whichever way the debate ends, one thing is for certain, your free insurance quotes will be starkly different if Proposition 17 passes.

June 04, 2010, Posted by Rainy Day Mitch