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2012 Automobile Insurance Discount Act Easily Gathers Signatures

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The American Agents Alliance, the sponsors of the 2012 Automobile Insurance Discount Act that rewards consumers for following the law and allows a new discount for continually having automobile insurance, is submitting more than 800,000 signatures they gathered in just 10 weeks to qualify this initiative.

“This was an easier effort than expected,” said Mike D’Arelli, Executive Director of the American Agents Alliance. “People understand that this discount is good for consumers. The fact that this discount is already allowed in most other states, and allows Californians to shop their insurance loyalty discount with other companies for the best prices, appeals to voters.”

Current law only allows insurance companies to offer consumers a continuous coverage discount, for maintaining automobile insurance if the consumer stays with the same company.

This proposal will allow consumers control of the discount so they can take that discount with them to shop for a better price with other companies. Although the initiative is similar to Prop 17, which lost by two percentage points in the 2010 election, there have been significant improvements to be inclusive and reach those who do not have insurance.

Military personnel receives the discount. Individuals who have lost their job for a period of up to 18 months also qualify for the discount; as do those who lapse coverage for 90 days for any reason. Children living with their parent(s) will receive the same discount available to their parent(s). Consumers will get a discount for each year they were insured in the previous five years. For example, if you had four years of insurance you will get 80 percent of the discount.

Unlike the present system, more people are protected. “The present system is broken,” continued D’Arelli. “It is ridiculous that the consumer loses the discount they have earned if they go to a new insurance company.

We strongly believe that allowing the consumers to control their discount will create a more competitive and cost-effective insurance market.” USAA, which opposed Prop 17, has already voiced their support.

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