California auto insurance companies continue to debate Prop 17. According to the article “Consumer Advocates, Insurers Battle Over Prop 17″ by Sue Kwon on cbs5.com The Yes on Prop 17 campaign is spending millions in ads to spread their message.
With Prop 17, the clean record discount would follow the driver if they chose to switch companies. Insurance broker, John Morton, with the Alliance of Insurance Agents and Brokers wants the measure to pass. He believes it’s a win-win for his clients. He sees the good driver discount as something a driver should have ownership over regardless of what company they go with. Morton also thinks Prop 17 will cause companies to compete and drive down California auto insurance quotes.
The Executive Director of the Consumer Federation of California, Richard Holober, believes the opposite will happen. California auto insurance companies, such as Infinity Auto Insurance, may end up charging more to certain customers including students, military, unemployed, or low-income drivers because they break continuous coverage within 90 days. This is detrimental to drivers in these groups who may have perfect driving records and otherwise would not get their rates raised on them.