2012 Automobile Insurance Discount Act Qualifies With Random Sample of Signatures

SACRAMENTO, Calif., Jan. 20, 2012 /PRNewswire/ -- The American Agents Alliance, an association of independent insurance agents and brokers who shop many companies to write the most competitive insurance policies for California consumers, is sponsoring the 2012 Automobile Insurance Discount Act.  The goal is to get every Californian insured at a competitive price. The Alliance is pleased that the Secretary of State verified through random sample the 504,760 signatures required to place this consumer friendly initiative on a statewide ballot.

A measure can qualify via random sampling of petition signatures if the sampling projects a number of valid signatures greater than 110 percent of the required number.  

"Simply put, it was easy for us to obtain the necessary signatures because this initiative benefits consumers," said Ken May, President of the American Agents Alliance. "It rewards consumers for following the law and allows a new discount for continually having automobile insurance."

"People understand that taking the discount out of the hands of the insurance companies and giving it to consumers is an idea that has made sense in virtually every other state and makes good sense in California too," said May. "We urge everyone to read the initiative – the discount already exists, this initiative gives it to consumers." 

Current law only allows insurance companies to offer consumers a continuous coverage discount for maintaining automobile insurance if the consumer stays with the same company.  This proposal will allow consumers control of the discount so they can take that discount with them – to shop for a better price with other companies.  This discount is already allowed in 48 other states.

There is the temptation to compare this new initiative to Prop 17 of two years ago.  While our goals are similar, there have been significant improvements to make the initiative more inclusive for those who are presently insured and to reach out to those who do not have insurance.

• Military personnel receive the discount.
• Individuals who have lost their job for a period of up to 18 months also qualify for the discount; as do those who lapse coverage for 90 days for any reason.
• Children living with their parent(s) will receive the same discount available to their parent(s).
• Consumers will get a discount for each year they were insured in the previous five years.  For example, if you had four years of insurance you will get 80 percent of the discount.  Unlike the present system, more people are protected.

"The present system is unfair to consumers," continued May.  "It is ridiculous that consumers lose the discount they have earned if they go to a new insurance company.  We strongly believe that allowing the consumers to control their discount will create a more competitive and cost effective insurance market. We urge all Californians to read the initiative." 

To find out more, visit www.2012AutoInsuranceDiscountAct.com

SOURCE 2012 Automobile Insurance Discount Act