Proposition 17 (2010)

Auto Insurance

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Insurance companies could offer new customers a discount on their automobile insurance premiums based on the length of time a customer has maintained bodily injury liability coverage with another insurer.

Yes: 1,889,363 [48.1%]
No: 2,038,215 [51.9%]

Details

Pro/Con
Pro: 

Supporters say that Proposition 17 can save insured drivers up to $250 by eliminating a surcharge for changing insurance companies. They claim that Proposition 17 corrects a flaw in state law which prevents insured drivers from taking continuous coverage discounts with them if they change insurers.

Supporters

Yes on 17 - Californians for Fair Auto Insurance Rates and Mercury General Corporation and Affiliates
California Chamber of Commerce

Con: 

Opponents say that Proposition 17 will allow auto insurance companies to raise premiums by as much as $1000 on good drivers. They say that the proposition reverses a voter approved law and allows new insurance surcharges that will harm middle class families and lead to more uninsured motorists.

Opponents

Stop Prop 17 - Campaign for Consumer Rights
Stop the Surcharge [Website not available online].

In Depth

Proposition 103 (Section 1861.01 (a) of the California Insurance Code (CIC)), enacted in 1988, set current state law regarding automobile insurance rates and premiums for insurance policies. Rates and premiums are determined by the insured's driving record, the number of miles driven every year, and the number of years of the insured's driving experience. Under the law, the Insurance Commissioner can adopt additional factors that relate to the risk of an insurer having to pay claims for a loss suffered by an insured person. One of these factors is "persistency", which establishes the right of an insurer to reward long-term customers with discounts and other bonuses. New customers are barred from any persistency discount. The law also bars insurance companies assigning rates and premiums based on whether a customer did not previously have automobile insurance. Prop. 103 also established the requirement of all insurance companies in the state to pay an insurance premium tax instead of a corporate income tax. The tax is based on the amount of insurance premiums the insurer earned in the state each year for automobile insurance as well as other kinds of insurance.

Proposition 17, or The Continuous Coverage Auto Insurance Discount Act (09-0028), appears on the June 8, 2010 ballot. The act would amend Prop. 103 to authorize insurance companies to offer persistency discounts to new customers who have had insurance coverage in the past but with a different insurance company. Customers would be eligible as long as their coverage had not lapsed for more than 90 days in the last five years. Customers who had lapsed coverage due to military service in another country would also be eligible. Minors who live with a parent could qualify for the discount based on the their parent's eligibility. California's Legislative Analyst estimates that the net impact on state premium tax revenues from Proposition 17 would probably not be significant.

Polling

SurveyUSA Election Poll #16638
“On Proposition 17, which allows car insurance companies to base prices partially on a driver's history of insurance coverage, are you ... Certain to vote yes? Certain to vote no? Or not certain? {"Not certain" voters were asked: At this hour, on Proposition 17, do you ... lean toward yes? lean toward no, or do you not lean?}””

Voter Resources

Official CA Documents

Official Voter Information Guide

Campaign Finance Information

Cal-Access General
Committees formed to support or oppose the ballot measure

Cal-Access Ballot Measure Summary Data Search
Select Primary 08 June 2010 and Proposition 017.

Cal-Access provides financial information supplied by state candidates, donors, lobbyists, and others.

Nonpartisan Analysis

Ballotpedia

Pros & Cons (League of Women Voters)

Multimedia
Supporters
Yes on Proposition 17 - the Facts -- Yes on Prop. 17
Yes on Proposition 17 - the Facts -- Yes on Prop. 17
Non-Partisan
Voter Minute: Proposition 17 -- Center for Governmental Studies
Voter Minute: Proposition 17 -- Center for Governmental Studies

Prop. 17: Auto Insurance Changes
KQED Forum with Michael Krasny
Opponents
Mercury Insurance Wants You To Pay More For Your Car -- Stop Prop. 17
Mercury Insurance Wants You To Pay More For Your Car -- Stop Prop. 17
Mercury Insurance Group Gets Caught Breaking The Law, Then Tries To Make It Legal With Prop 17. -- consumerwatchdog
Mercury Insurance Group Gets Caught Breaking The Law, Then Tries To Make It Legal With Prop 17. -- consumerwatchdog
More Proof Mercury Initiative Would Raise CA Insurance Premiums -- For Consumer Rights
More Proof Mercury Initiative Would Raise CA Insurance Premiums -- For Consumer Rights
Stop Prop 17 -- For Consumer Rights
Stop Prop 17 -- For Consumer Rights
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