Changes current law to permit insurance companies to set prices based on whether the driver previously carried auto insurance with any insurance company. Allows insurance companies to give proportional discounts to drivers with some prior insurance coverage. Will allow insurance companies to increase cost of insurance to drivers who have not maintained continuous coverage. Treats drivers with lapse as continuously covered if lapse is due to military service or loss of employment, or if lapse is less than 90 days. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:

Probably no significant fiscal effect on state insurance premium tax revenues. (11-0013.)

READ MORE:
http://ag.ca.gov/cms_attachments/initiatives/pdfs/i944_initiative_11-0013_a1s_(auto_insurance_rates).pdf

This initiative may look like a good or bad deal depending on what kind of car insurance customer you are.

If you never have a lapse in coverage, Prop 33 promises the chance of a discount for “continuous coverage” even if you change insurance companies.

But if you have a lapse for any reason – good or bad – it could result in higher car insurance rates.

Prop 33’s place on the ballot was secured by a multi-million dollar campaign contribution from the chairman of Mercury Insurance, George Joseph.

A similar measure just barely failed on the June 20120 ballot, and perhaps Joseph sensed he could get his idea over the finish line in 2012.