Ballot Initiative On California Auto Insurance Rates Set For November 2012

Post Date February 15, 2012 – A California insurance ballot initiative targeting auto insurance companies seeks approval from state insurance regulators before adjusting auto insurance rates. California Residents will also vote to allow auto insurance companies offer both discounts and surcharges to policyholders based on their life style history. This will require automobile insurance companies to seek prior approval from state regulators before adjusting their  automobile insurance rates.  The insurance industry backed a proposal ,Proposition 17, which California state residents rejected in 2010. Consumer protection advocates that seeks to strengthen the car insurance rules are concern car insurance carriers will raise their rates  or  just deny car insurance coverage to drivers due to their history. The outcome of the ballot will be pit consumer groups against  car insurance carriers in the golden state.

Proponents of the initiative to allow insurance companies greater latitude in adjusting premium rates have already stated their case. They claim more flexible pricing on insurance coverage will allow them to offer cheap auto insurance rates for California drivers whom have good driving records. Consumer protection agencies feel some drivers will benefit while many others face punitive penalties, simply because they held no jobs or where away for school or work in other areas; preventing them from driving regularly. According to some, the fundamentals of prop 13 are sufficient and reliable for California drivers. There are other states that insurance carriers cannot offer surcharges to prospective customers, only to current ones seeking insurance coverage renewal.


Michael E. Dortch
President &  Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602