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Endorsement By Democratic State Senator Juan Vargas

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FOR IMMEDIATE RELEASE March 14, 2012 CONTACT: Rachel Hooper 916-708-1868


Today, California State Senator Juan Vargas (D – San Diego) former Chair of the Assembly Insurance Committee, announced his endorsement of the 2012 Automobile Insurance Discount Act. This initiative will allow California consumers to participate in a discount that is already allowed in 48 other states.

Simply put, the 2012 Automobile Insurance Discount Act will take a discount that is already in place but controlled by the insurance companies and gives control of that discount to consumers to shop for a better price. It will increase competition, lower prices and insure more Californians. “I find it absolutely ridiculous that every consumer group in the state of California is not supporting this initiative,” said Senator Vargas. “I am extremely disappointed that a group like Consumer Watchdog, with their own special interests, have resorted to fear mongering and name calling in an ugly bit of behavior that demeans them as a group and deliberately misleads consumers.”

Current California law allows consumers a discount for having continuous car insurance, but only if the consumer stays with the same company. This new initiative will allow the insured, not the insurance company, to control the discount.

“This initiative saves consumers money by increasing competition among automobile insurance companies,” continued Senator Vargas. There have been significant improvements to make the initiative more inclusive for those who are presently insured in an effort insure more Californians. Military personnel receive 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.

This initiative is sponsored by the American Agents Alliance, the local agents who sell insurance policies to consumers; it is their goal to insure every Californian. Senator Vargas joins a growing list of supporters of the 2012 Automobile Insurance Discount Act that includes USAA (the military insurance), the California Republican Party and Democratic leader Don Perata.

### Consumers Deserve to be Rewarded for Following the Law

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