In 1998 California voters passed Proposition 103, a ballot measure that was strongly opposed by the auto insurance industry and championed by the Consumer Watchdog Campaign. This began the revolutionary era in California of lower and more controlled insurance premiums. This voter-backed initiative required auto insurers to offer discounts to drivers who had maintained persistent coverage with their carriers. Prop 33 would change that by allowing insurance companies to set rates based on whether a driver previously carried automotive insurance with any insurance company. While this measure may sound positive at first blush, Prop 33 would realistically result in higher car insurance fees, as well as a rise in uninsured motorists.
The “Yes on 33″ campaign has hit California airwaves hard. Most notably, the campaign has been trying to persuade drivers that a Yes vote would allow insurance companies to offer loyalty discounts to motorists who want to change plans. However, such ads only show drivers what is, at best, a quasi reward a more competitive car insurance market.
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