Prop 33, otherwise known as the 2012 Automobile Insurance Discount Act, will give consumers in California the ability to take advantage of their continuous coverage discount for automobile insurance. Currently, California consumers receive discounts for having continuous auto insurance, but they are unable to transfer the discount to other insurance providers.
Prop 33 will help insure more drivers, as companies will have to compete for the loyalty of their customers, resulting in lower prices. The act will allow more people to have insurance, including ones who have a lapse in coverage due to:
- Active military service
- Unemployment for up to 18 months due to layoffs or furloughs
- 90 days or less over the past 5 years
Prop 33 also allows children to be provided a discount based upon their parent’s eligibility for the continuous coverage discount, even if they aren’t living at home. For consumers who are unable to demonstrate continuous coverage, they will be given a proportional discount based upon “the number of whole years in the immediately preceding five years for which the consumer was insured."
Unfortunately, Proposition 33 has faced opposition from Consumer Watchdog. They have been actively shouting out against Prop 33’s latest radio advertisements targeted towards the military, demanding that the ads be removed due to the tragic events in Libya and that “they are spitting in the eyes of foreign service officers and other heroes.” However, military groups such as American GI Forum and the Veterans of Foreign Ways have already shown their support of Proposition 33. Consumer Watchdog is preventing Californians from being eligible for continuous coverage discounts, while 48 other states already allow it. The opponents argue that the proposition will lead to higher premiums for people who don’t have auto insurance yet. Unless they are eligible for the exceptions stated above, the uninsured will not be punished, they just won’t get the discount for having continuous coverage.
You can read more about the benefits of Proposition 33 by visiting http://www.yesprop33.com/
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