Conran, Jim

Making Auto Insurance Discount Portable is Good for Consumers

By Jim Conran
Consumers First

On Monday, signatures were submitted to County Registrars to qualify a 2010 statewide ballot initiative which will fix an inconsistency in auto insurance law, expand an already-existing discount and lower auto insurance rates for millions of California consumers who abide by California law and maintain auto insurance coverage. 

Under current law insurers can give existing customers a discount for having continuous auto insurance coverage (sometimes called the loyalty discount), but if that customer wants to switch insurance companies the new company is prohibited from providing that same customer that same discount. 

The Continuous Coverage Auto Insurance Discount Act ensures all drivers who maintain their automobile insurance coverage are eligible for this discount even if they change their insurance company. Who benefits? The more than 80% of consumers who maintain auto insurance. This includes working families, single parents, elderly and young drivers.