California General Election

Changes current law to allow insurance companies to set prices based on whether the driver previously carried auto insurance with any insurance company. Allows proportional discount for drivers with some prior coverage. Allows increased cost for drivers without history of continuous coverage. Fiscal Impact: Probably no significant fiscal effect on state insurance premium tax revenues.

WHAT YOUR VOTE MEANS

YES A YES vote on this measure means: Insurance companies could offer new customers a discount on automobile insurance premiums based on the number of years in the previous five years that the customer was insured.

NO A NO vote on this measure means: Insurers could continue to provide discounts to their long-term automobile insurance customers, but would continue to be prohibited from providing a discount to new customers switching from other insurers.

ARGUMENTS

PRO Californians with car insurance earn a discount for following the law. But if you switch companies you lose the discount. Proposition 33 allows you the freedom to change insurance companies and keep your discount. Proposition 33 makes insurance companies compete, helps lower rates, and will insure more drivers.

CON Proposition 33 is another deceptive insurance company trick. Insurance companies spent millions to pass a similar law in 2010—voters defeated it. Proposition 33 allows auto insurers to raise premiums on responsible drivers up to $1,000, unfairly punishing people who stopped driving for legitimate reasons. Consumer advocates OPPOSE Prop. 33.

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