ARGUMENT IN FAVOR OF PROPOSITION 17

PROPOSITION 17 CAN SAVE YOU MONEY ON CAR INSURANCE

California's economy has taken a toll on all of us—lost jobs, businesses closing and our savings getting smaller. Families need to save money wherever they can. Prop. 17 can help. Under current law, drivers who have maintained auto insurance with the same company are eligible for a continuous coverage discount.

However, a flaw in existing law prohibits drivers from taking this continuous coverage discount with them if they switch insurance companies to get lower rates.

The 80% of responsible drivers who maintain automobile insurance should not be penalized and lose their discount just because they change insurance companies.

Proposition 17 is simple and straightforward: You are eligible for the continuous coverage discount even if you change insurers.

Yes on 17 means:

• Your family could save HUNDREDS OF DOLLARS PER YEAR
• Increased COMPETITION
• More CHOICES AND OPTIONS for consumers

"If you have auto insurance, Proposition 17 can save your family as much as $250 a year. It rewards responsible drivers by allowing them to shop for the lowest rate while keeping their continuous coverage discount."
  —Harvey Larsen, Secretary-Treasurer, Consumers Coalition of California

CONSUMERS AND SMALL BUSINESSES SAY YES ON PROP. 17

• California Alliance for Consumer Protection
• California Chamber of Commerce
• California Senior Advocates League
• Small Business Action Committee
• California Hispanic Chambers of Commerce
• Consumers First, among others.

Many businesses and organizations support this measure, including Mercury Insurance, because it means increased competition in the insurance marketplace and new customers. Providing additional discounts is one way an insurance company can compete. More competition means lower rates for consumers!

PROPOSITION 17: MORE COMPETITION, LOWER RATES

Drivers don't lose their good driver discount when they change insurers. They shouldn't lose their continuous coverage discount just because they change insurers.

"Just like some stores honor their competitors' coupons, Prop. 17 allows drivers to shop around for the best price and keep their continuous coverage discount, resulting in more choices, more competition and more savings."
  —Tom Hudson, Executive Director, California Taxpayer Protection Committee

DON'T FALL FOR OPPONENTS' SCARE TACTICS

• Opponents are fighting a discount that will benefit the 80% of drivers who follow the law and maintain insurance.
• Current law (Section 1861.02) requires that insurance rates be based primarily on your driving safety record, miles driven annually and years of driving experience. This measure does not change that!
• Section 1861.024 (b) of the measure specifically protects drivers who must cancel coverage for economic hardship, illness, job-loss or any reason other than non-payment for a minimum of 90 days. They are still eligible for the discount.
• And lower income consumers will still be eligible for California's Low Cost Auto insurance program.

"Prop. 17 protects the continuous coverage discount for soldiers that cancel insurance when they are sent overseas to serve our country."
  —Willie Galvan, State Commander, American GI Forum of California

READ IT FOR YOURSELF.

THEN VOTE YES ON 17: LOWER INSURANCE RATES, MORE COMPETITION AND CHOICE.

www.yesprop17.org

JIM CONRAN, Former Director
California Department of Consumer Affairs
ALLAN ZAREMBERG, President
California Chamber of Commerce
JOEL FOX, President
Small Business Action Committee

REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 17

The proponents of Proposition 17, funded by Mercury Insurance Company, are trying to put one over on you. All they talk about is "discounts" and "competition." Here's what they don't want you to know:

FACT: Prop 17 will increase car insurance premiums for millions of Californians who have done nothing wrong. It forces you to buy insurance—even if you stop driving—or you will get hit with surcharges of up to $1,000/year (based on Mercury's numbers) when you start driving again … even if you are a good driver.

FACT: If you have a break in coverage for 91 days or more during the past five years, you'll be charged more, no matter how legitimate the reason: illness, attending college, lost your job, even military service.

That's why USAA, which serves our troops and their families, says: "Based on the potential harm to military personnel, we cannot support Prop. 17. They're doing their duty to their country. But they could get pounded by this kind of law."

FACT: 17 overturns a law passed by California voters in 1988 to make insurers compete fairly for customers.

FACT: Prop 17 is 99% funded by Mercury, which was caught "charging discriminatory rates to motorists who were not at fault in accidents, were members of the armed forces or worked in certain professions." (Los Angeles Times, 2/15/10)

When was the last time an insurance company put something on the ballot to lower your rates? Never.

For your own protection, vote NO on 17.

JOHN GARAMENDI, former Insurance Commissioner
State of California
JOHN VAN DE KAMP, former Attorney General
State of California