Proposition 17

By now you've probably heard the ads for Prop 17 that state that there is a "flaw in the law" that allows you to have a discount on your auto insurance, but only with your current carrier.  The ads state that passage of Prop 17 will allow you take this discount to any insurance company, and on the surface that sounds good.  It's not the entire truth.

Currently, if you have had bodily injury liability coverage your insurance company MAY offer you a discount.  They don't have to.  You can only use that discount with the carrier you are currently using.  The term used in the current law is Persistency of Coverage.  Persistency exists even if there is a lapse of coverage of up to two years while serving in the military, or 90 days in the last five years for any other reason.

Prop 17 would change the law to allow the discount with any insurer, not just the current insurer.  Note that it doesn't guarantee you a discount, it only says the insurance company MAY offer it.  By that argument, an insurance company could just as easily reduce the premiums if they wanted to.  What really changes is the persistency period.  Service in the military is still a valid reason for lapse of coverage, but the 90 days in the last five years for any other reason will be changed to "90 days in the last five years for any reason other than nonpayment of premium."  In other words, anyone whose coverage has lapsed because they weren't able to pay premiums for three months will lose the discount.  In short, the insurance companies get to raise their rates.

In a time when unemployment is at an all-time high and people are trying to pay their mortgages and put food on the table, it doesn't seem fair to allow an insurance company to raise their rates.  That's what Prop 17 does.  It was sponsored by Mercury Insurance Company as a change to Prop 103 that was passed in 1988.  Mercury is spending millions on this campaign, knowing that no grass roots organization has the financial means to stop them.  

This is where you come in.  First, send this email to your friends in California.  Even if they don't vote, they probably know people who do.  Get the word out on what this initiative really is.

Second, if you are able to donate to get this message out, go to http://www.stopthesurcharge.org and make a donation.  

Lastly, if you need additional information, you can read the entire text of the Proposition in the California Statewide Direct Primary Election, Tuesday, June 8, 2010 Official Voter Information Guide that came from the Secretary of State's office.  The text begins on page 76.  If you didn't receive this document in the mail, you can also read it here: http://voterguide.sos.ca.gov/pdf/english/text-proposed-laws.pdf