California Statewide Direct Primary Election
Tuesday, June 8, 2010, Official Voter Information Guide
Official Voter Information Guide
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Propositions
Proposition 17
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PROP
17
Allows Auto Insurance Companies to Base Their Prices in Part on a Driver's History of Insurance Coverage. INITIATIVE STATUTE.
Official Title and Summary
Prepared by the Attorney General
ALLOWS AUTO INSURANCE COMPANIES TO BASE THEIR PRICES IN PART ON A DRIVER'S HISTORY OF INSURANCE COVERAGE. INITIATIVE STATUTE.
- Changes current law to permit insurance companies to offer a discount to drivers who have continuously maintained their auto insurance coverage, even if they change their insurance company, and notwithstanding the ban on using the absence of prior insurance for purposes of pricing.
- Will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage.
- Establishes that lapses in coverage due to nonpayment of premiums may prevent a driver from qualifying for the discount.
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