Proposition 33's Possible Passage Would Cause CA Drivers To Face Higher Insurance Premium Rates

The mere mention of Proposition 33 evokes emotions from many drivers. This new proposition has had a lot of support from a man named George Joseph who is an insurance executive. The way that the proposition works is that anyone who has allowed their car insurance policy to lapse for a period of more than 90 days would face a surcharge.

This would hurt many residents in the state of California financially. Currently, the unemployment rate in the state is high due to poor economic conditions and the fact that the state is facing a massive deficit. Some drivers take public transportation to get around if they do not have a long commute so they might have allowed their car insurance coverage to lapse. Others might have been unemployed or could not afford the coverage so they might have had a lapse as well.
For example, if a college student who went to school did not need to use his car during the school year then he might park his car at home and leave it uninsured for months at a time.

This college student would end up facing a surcharge and much higher car insurance premium rates which many drivers think is unfair.
Proposition 33 is a ballot initiative and if it is passed then drivers who did not have insurance before or who have never had it in the first place could pay a very high price for coverage. In an election year, passing something like this does not seem like it would benefit the state’s drivers or car insurance companies.
For example, if the state’s drivers have to face surcharges and much higher premium rates because of prior lapses in coverage then they might become discouraged and just stay uninsured. Yes, car insurance companies like the idea of being able to make more money by charging higher premium rates to their policy holders but they also risk alienating them with such initiatives.

The more money that consumers have to pay for their car insurance premiums, the less likely they are to be loyal to any one insurance coverage provider in the state. Money talks so competition would soar if the measure passed. It is important for voters to understand that the ballot initiative could be a major game charger in the state.
More than two decades ago, the state voted down a measure that would have allowed lower income families and others who were not insured to be penalized for having never been insured before. The election will be held in less than two months and at that time the state’s voters need to decide if the proposition will indeed pass. If it does, then drivers across the state could be forced to pay more money for car insurance coverage.