Nation's Leading Insurer of Soldiers, USAA, Criticizes Prop 17; VoteVets.org Announce Opposition

Chairman of VoteVets.org Calls for Investigation into Discrimination Against Soldiers by Prop 17 Sponsor, Mercury Insurance

SANTA MONICA, Calif., Feb. 18 /PRNewswire-USNewswire/ -- Two of the country's largest organizations representing the interests of American servicemembers have spoken out against Proposition 17.  The California ballot initiative sponsored by Mercury Insurance would allow auto insurance companies to surcharge millions of drivers in California, including military personnel who did not buy insurance while living on base – even if they did not own a car.

USAA, the national auto insurance company that was formed in 1922 by 12 army officers who insured each other to provide access to insurance for military personnel, says it cannot support Prop 17 on the California ballot because of the impact it will have on active duty service members. VoteVets.org, which signed the ballot argument against Prop 17, represents 100,000 vets and military families.

"Any rating system that does not take into account the unique circumstances military personnel face in maintaining consistent auto insurance does them a disservice and is not acceptable to us. Based on the potential harm to military personnel, we cannot support Prop. 17," said Michael Mattoch, former Judge Advocate General, and current regional Governmental Advocate and Counsel for USAA.

Government reports published last week reveal that Prop 17 sponsor Mercury Insurance has discriminated against military personnel, including an internal policy of marking members of the military with a "U" (Unacceptable). The reports by the California Department of Insurance were obtained by the San Francisco Chronicle, through a public records act request and are available at: http://bit.ly/dA6urs

"It is an outrage that an insurance company would discriminate against those of us who honorably serve our country. VoteVets.org rejects this vile way of doing business and echoes Consumer Watchdog's call to Admiral Mullen asking that the military investigate and act upon nationwide discrimination against servicemen and women by Mercury Insurance."

A copy of Consumer Watchdog's letter to Admiral Mullen can be found at: http://www.consumerwatchdog.org/resources/AdmMullen020810.pdf

Acknowledge Your Service, Pay Higher Premiums in Texas

The Campaign for Consumer Rights, the campaign affiliate of Consumer Watchdog organizing the effort to defeat Prop 17, has shown how Mercury Insurance currently discriminates against soldiers in Texas.  There, companies are allowed to surcharge drivers if they didn't have auto insurance in the past.  If a customer applying for insurance at: http://MercuryInsurance.com  indicates that he is not currently insured because he was a service member on Active Duty, he is charged 33% more for auto insurance than someone who already had insurance when he applied to Mercury. A video illustration of Mercury's soldier surcharge is available at: http://StopProp17.org

Prop 17 would, in the words of the initiative, "Bring California into line with other states like Texas…"  Under Prop 17, people – including soldiers serving stateside – who stopped driving and didn't need insurance for a time would be required to pay hundreds of dollars more for insurance when they sought to restart coverage. The measure would gut a provision of the 1988 insurance reform measure Proposition 103, which prohibits companies from raising rates on people because they did not have auto insurance in the past.

The Campaign for Consumer Rights, a nonpartisan, nonprofit organization is working with consumer groups, seniors, unions and soldiers to oppose Mercury's deceptive initiative.  The Campaign for Consumer Rights is the campaign affiliate of the nonpartisan, nonprofit Consumer Watchdog.

Join us on Twitter at StopMercury: http://twitter.com/StopMercury

SOURCE Campaign for Consumer Rights