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California Insurance Agents Submit Automobile Insurance Discount Initiative

SACRAMENTO – Yesterday the American Agents Alliance submitted for title and summary an automobile insurance discount initiative.

The proposal will allow consumers to receive a discount for their years of continuous automobile coverage regardless of the company where they seek insurance. Presently, the law allows only the company where you are already insured to offer the discount. “The way the law is written now rewards insurance companies,” said Mike D’Arelli, Executive Director of the American Agents Alliance.

“We believe that giving the consumers control over their discounts will increase competition between insurance companies, lower costs, and insure more people.” D’Arelli said that the new initiative is similar to Proposition 17 which lost by 2 percentage points in the 2010 election.

“After listening to the voters, our clients, and even our opposition, we realized that the new initiative needed to be written with greater clarity. There are new provisions that protect the continuous coverage history of our men and women in the military, those who suffered from the economic downturn, young drivers on the cusp of leaving home, and allow proportional coverage for the whole years in the preceding five years in which a person was insured.”

The Alliance expects to not only have the same support they received on Prop. 17, but have already begun working with USAA Insurance, the military insurance company, and others who opposed the 2010 effort.


Responds Favorably to Opposition to Previous Measure – Rewards Consumers, Not Insurance Companies – Increases Competition and Lowers Rates – More Insured

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