PROP
33
AUTO INSURANCE COMPANIES.
PRICES BASED ON DRIVER’S HISTORY OF INSURANCE COVERAGE. INITIATIVE STATUTE.
OFFICIAL TITLE AND SUMMARY
PREPARED BY THE ATTORNEY GENERAL
AUTO INSURANCE COMPANIES. PRICES BASED ON DRIVER’S HISTORY OF INSURANCE COVERAGE. INITIATIVE STATUTE.
- Changes current law to allow insurance companies to set prices based on whether the driver previously carried auto insurance with any insurance company.
- Allows insurance companies to give proportional discounts to drivers with some history of prior insurance coverage.
- Will allow insurance companies to increase cost of insurance to drivers who have not maintained continuous coverage.
- Treats drivers with lapse as continuously covered if lapse is due to military service or loss of employment, or if lapse is less than 90 days.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:
- Probably no significant fiscal effect on state insurance premium tax revenues.