Prop 17 will be on the June 8th ballot. Should you vote YES or NO? Our official position is a resounding NO vote for Prop 17. The proposition is funded in its entirety by Mercury Insurance. Mercury is pushing for Prop 17 by promoting that it will allow insurance companies in the state to give what are known as "persistency discounts" to new customers. "Persistency discounts" are discounts for those who have had continuous or nearly continuous auto insurance coverage.
What they don't tell you is that in addition to that, customers who have had non-continuous coverage (which in this economy I am sure is pretty common), will be surcharged for the lapse in coverage. Some may call it a premium rate hike in disguise for this very reason. In other states where Mercury does business, this is exactly their practice, the will apply surcharges to those who don't have continuous coverage.
In the end, it's important to remember that insurance companies like Mercury are in business to make money, not lose money. All businesses are in business to make money. That is the nature of business. To think that Mercury is promoting this Proposition to "save us consumers money" would mean they are willing to make less money. Very unlikely.
For more information on the ballot initiative, go to http://ballotpedia.org/wiki/index.php/California_Proposition_17_(June_2010).
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