Auto Insurance Rates Would Drop

 
There are many who are for the Proposition 17 in California, and many who are not. However, the majority of those that are against the Proposition are the auto insurance companies as many feel that although it would cut auto insurance rates for consumers it would also cut into their profits. Experts say that the new Proposition could save hundreds of dollars per year for consumers, something that would be a welcome change in a state where people already pay a high premium.
 
Under current law, if you have auto insurance with the same company you get a discount for your loyalty of having had auto insurance that whole time. You get a continuous coverage discount. However, if you move to another auto insurance company, you are faced with losing that discount, which makes it difficult for people to leave. This means that their auto insurance company has them somewhat over the ropes, leaving them to have to pay for their policies with them instead of looking around for a better deal.
 
The new law would make it possible for consumers to take that discount and carry it with them to their new auto insurance company. They would still have coverage, thus keeping their loyalty status, but the auto insurance companies would have to vie for their business. This means lower premiums for clients, and the ability to pick and choose where they go with discount in hand. This auto insurance discount is coming at a time when the economy is down and people are struggling to make ends meet – and could not come at a better time.

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