Californians for Fair Auto Insurance Rates Available to Respond to Press Conference Call by Opponents of Continuous Coverage Auto Insurance Discount Act on 2010 Ballot

Measure Would Extend Existing Discount for Drivers Who Maintain Auto Insurance and Save Consumers Money.

Jan 19, 2010, 21:17 ET from Californians for Fair Auto Insurance Rates

SACRAMENTO, Calif., Jan. 19 /PRNewswire/ -- Californians for Fair Auto Insurance Rates, a coalition of consumer advocates, businesses, taxpayer advocates and insurers, supporting the Continuous Coverage Auto Discount Act will be available tomorrow, January 20, 2010, to provide response/rebuttal to what is expected to be overblown allegations made by opponent Harvey Rosenfield tomorrow in his conference call against the measure.

Media interested in response should call Kathy Fairbanks at (916) 443-0872 to arrange an interview.

Contrary to what opponents have said and will say about the measure, the ballot initiative simply extends an already-existing auto insurance discount so that California drivers who continually maintain auto insurance qualify for the "continuous coverage discount" even if they switch insurance companies. This measure will encourage competition and choice in the auto insurance marketplace, rewarding responsible drivers who maintain auto insurance as required by law by saving consumers money on their auto policies.

More than 700,000 signatures to qualify the measure were submitted to county registrars in December. Signature verification is nearly complete and the initiative could qualify for the ballot any day.


Under current law, insurance companies are allowed to offer a discount to their customers who maintain continuous coverage. However, an inconsistency in the law prohibits drivers from being allowed to take their continuous coverage discount with them if they change insurance carriers. The Continuous Coverage Auto Insurance Discount Act will fix this inconsistency and make the already-existing discount portable even if motorists change insurance companies. In doing so, it will reward responsible drivers who maintain auto insurance as required by law, and promote competition and lower rates by encouraging consumers to shop around when purchasing insurance.

The vast majority of California drivers (82%) maintain insurance and should be rewarded for keeping their insurance current.  Extending this discount will bring California up to speed with the vast majority of other states that already offer it.

Insurance companies still will be required to base a driver's auto insurance rates primarily on their driving safety record, miles driven annually and driving experience. Other discounts, like the good driver or student discount, will not be taken away.

SOURCE Californians for Fair Auto Insurance Rates