Proposition 33 Could Change Car Insurance Laws In CA Soon
Election Day is in about one month and California drivers will have to decide whether or not they want Proposition 33 to be passed. This would make drastic changes to the ways that car insurance companies can calculate their insurance premium rates.
Each driver has a car insurance history and this proposition if it were passed and enacted would allow car insurance providers to access this information and use it to determine risk and calculate rates. This could be bad for drivers who have had any car insurance lapses.
If you are a driver who has had continuous insurance coverage for longer than five years then you will receive a discount and be able to save money. However, other drivers such as those who are poor or younger will likely have to pay much more for their insurance coverage.
Many people have lapses in their insurance coverage. For example, many college students will have lapses in their coverage due to the fact that they often use public transportation while they are away at school in order to save money.
The Proposition does have exclusions in place so that unemployed workers, members of the military and drivers under the age of 18 who live with their parents do not suffer any penalties. Some drivers who are in favor of the proposition have argued that the measure would financially reward people who have consistently done the right thing by remain insured for several years.
Car insurance executives have stated that the discount is portable so that drivers can take it anywhere in the state so this will create more incentives for car insurance companies to reduce their premium rates. A continuous coverage discount could help many drivers in the state reduce their monthly premiums and in today’s economy every dollar is important.
Others who oppose the measure have stated that the practice could hurt the car insurance market. They say that it will force younger and poorer drivers to break the law and drive while uninsured. They have also stated that the insurance executive who has spent millions of dollars on supporting the measure would never have done so if the proposition was only to help save people money and that they want the proposition passed for self-gain.
The voters will have the final say on the matter in November. It is a good idea for all voters to read all of the information that has been written about the proposition before deciding on whether or not to vote for it. You might be insured for longer than five years straight but times could be tough and interrupt the coverage so you want to vote on it based on whether it will be good for all drivers not just yourself. This Proposition is almost identical to Proposition 17 which was struck down by voters in the state approximately two years before so voters really need to do their homework.