Smart Auto Insurance Blog

Prop 17 is a proposal on the California ballot sponsored by Mercury Insurance which will allow auto insurance companies to charge many drivers for various reasons.  This includes military people who did not purchase auto insurance while living on base even if they didn’t own a car at the time.  This is according to the article “Nation’s Leading Insurer of Soldiers, USAA, Criticizes Prop 17; VoteVets.org Announce Opposition” found on InsuranceNewsNet’s website.

USAA, which was formed in 1922, says it cannot support the bill because of the negative impact it will have on active duty men and women.  The rating system does not take into consideration the special circumstances of our military men and women and USAA does not feel this is right.  VoteVets.org signed a ballot argument against Prop 17 and they represent 100,000 veterans and military families.

Under Prop 17 drivers, including soldiers serving stateside, who stop driving and did not need insurance for a certain time period would have to pay hundreds more for their auto insurance when they decided to restart the coverage.  Doesn’t seem fair to people who have legitimate reasons to stop carrying insurance for small periods of time, such as the military.

A proposed bill to ban higher auto and property insurance rates for those living in Detroit, Michigan and surrounding areas failed in the Senate recently according to the article “Bill to Ban Higher Insurance Rates In Detroit Fails” by Karen Bouffard on detnews.com. 

The Senate brought the bill for a vote by Sen. Martha G. Scott, D-Highland Park, who urged Congress to pass the bill.  She said the state of Michigan pays the 12th highest auto insurance rates, but in the urban area it’s the highest in the country.  Sen. Alan Sanborn, R-Richmond believes the ban would increase rates for people who live in non-urban areas. 

The new bill could result in higher auto insurance rates for 3 out of 4 Michigan drivers according to Sanborn.  He believes there needs to be another way to solve the high cost of Michigan auto insurance.  As many people are struggling in this economy, auto insurance costs are becoming challenging for many residents.  Hopefully something can be worked out to help make auto insurance more affordable for all.