New California Cheap Auto Insurance Rate Discount Sought

Post Date February 13, 2012 – The American Agents Alliance, an organization of independent auto insurance agents and brokers, has collected over half a million signatures from  California car insurance buyers to sponsor an act that will allow consumers to shop for auto insurance coverage from other car insurance companies with their loyalty discounts in tact. The proposal is quite popular among  car insurance rate consumers. Nevertheless, the car insurance initiative faces stiff opposition from the Consumer Watchdog Groups based in Santa Monica, CA, which sees the move as a game by auto insurance companies to hike surcharges for drivers.

Today, the insurance quote law stipulates that insurers can only offer continuous coverage discounts to their current car insurance customers only. Those who opt to change car insurance coverage in California,  will not qualify for loyalty and continuous coverage discounts, despite of their driving experience and safety records. Even those  problem drivers whom have at  fault accidents, speeding tickets, even a DUI or DWI can still receive a loyalty discount.  California voters rejected a similar proposal in 2010 due to lack of solid information and clarity. According to the new rules sponsors, the amended version contains significant improvements for car owners. These include:

  • Insurance Rate Discounts for military veterans.
  • Vehicle Insurance Discounts for residents who might have lost their jobs for 18 months prior to the proposal.
  • Discounts for car owners whose auto insurance policies are set to lapse in ninety days time.
  • Discounts for kids/youthful operators who live with their parents, so long as the folks qualify for loyalty points.
  • Annual auto insurance rate discounts for every year spent by drivers on the road.

Conversely, a California consumer watchdog group don’t like the proposal from AAA. According to their counter proposals, the new Act will clear the way for insurers to surcharge California drivers who previously did not have continuous insurance coverage. This is in contravention of the consumer protection act of 1988, which made it illegal to surcharge drivers based on their previous records.


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