Official title : Auto Insurance Companies. Prices Based on Driver’s History of Insurance Coverage. Initiative Statute.
Summary :
- Allows insurance companies to give continuous coverage discounts to drivers with some history of prior insurance coverage at another provider. Currently can only give that discount if coverage is at existing provider. Children residing with a parent could qualify for the discount based on their parent’s eligibility. Discount may be prorated based on % covered over the last 5 years.
- Treats drivers with lapse as continuously covered if lapse is due to military service, or 18 months in the last 5 years due to loss of employment, or if lapse is less than 90 days in 5 years.
Notes:
- Since 1988, the CA Insurance Commissioner reviews and approves rate changes for certain types of insurance, including automobile insurance, before changes to the rates can take effect. Factors are: (1) the insured’s driving safety record, (2) the number of miles they drive each year, and (3) the number of years they have been driving plus 16 other factors.
- Money supporting this initiative is primarily from Mercury Insurance and other insurance companies/agents.