The Insurance Family Blog

New Legislation May Give Benefits To Continuous Car Insurance Holders

Posted by Susie Scherff on August 30, 2011 at 9:30 AM

Car LegislationBack in 2010, legislation was proposed that would reward car insurance consumers for maintaining continuous coverage with discounts to their premiums, no matter who they had their coverage with.  That legislation failed to pass. 

However, a new form of the car insurance law, similar to that of 2010, that expands the definition of ‘continuous coverage’ is set for a ballot proposal and signature gathering. 

Inside The New Proposal

The new legislation includes language specifying that those who have had short lapses in car insurance coverage, have been injured or are unemployed as well as those who served in the military may also qualify for ‘continuous coverage.’  The measure also encourages competition as potential customers would now have the option of choosing a different car insurance company, whereas in the past continuous customers could only benefit from continuous coverage bonuses if they stayed with their current insurance provider.   If the new law is successfully placed on the ballot and passes, consumers can safely switch companies and still be considered as a candidate for benefits received under ‘continuous coverage’ without penalty.

California Attorney General moves on car insurance initiative

In June of this year, the group American Agents Alliance penned a letter to state regulators explaining that the goal of the initiative is to proliferate affordable car insurance coverage by creating discounts for drivers who maintained automobile insurance, even if they change companies.  

Last week the California Attorney General announced a title and summary for the proposed initiative.  Supporters are beginning the process of getting enough signatures to move the proposal ahead.

While opponents say that the initiative might unfairly penalize those who do not or have not had car insurance or owned a vehicle in the past, proponents contend that it will free up the marketplace, creating a more vigorous competitive environment and that, in the end, through discounts to those who’ve maintained insurance, that competition will save car insurance customers money. 

At Sutherland-Scherff, we take your good driving history into account when calculating your California car insurance premium.

Click here to contact one of our representatives to learn more about California Car Insurance.

Topics: Auto Insurance, Insurance, Commercial Auto Insurance, Car Insurance