More money for auto insurance ballot measure
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Contra Costa Times: Los Angeles-based insurer Mercury General Corp. on Tuesday put another $500,000 into Californians for Fair Auto Insurance Rates, the same sum it had put down at the end of June. The committee supports the Continuous Coverage Auto Insurance Discount Act, which according to the state Attorney General’s summary would alllow “insurance companies to increase or decrease the cost of auto insurance based on a driver’s coverage history” – that is, whether the driver has been insured before, with better rates available to those who’ve continuously maintained coverage even if they switch insurers. It also would allow insurers to consider “claims experience” when calculating the amount of such a reduction or when determining who’ll be eligible for it. Critics say the measure would penalize people who miss one payment or who decide not to drive and let their insurance lapse but later change their mind, and would let insurers penalize drivers simply because they file a claim, even if they are not at fault; currently only accidents where a driver is at fault can be used to increase his or her premium. The proposed measure’s proponents have until Jan. 11 to gather the 433,971 signatures required to put the measure on the ballot.
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