The way it is now:
In California, the price of car insurance is based on three main factors:
1) a driver’s safety record;
2) the number of miles driven each year; and 3) the number of years a person has been driving. Insurance companies are not allowed to use a driver’s history of insurance coverage as a factor in setting prices.
What Prop 33 would do if it passes:
Allow insurance companies to include a driver’s history of insurance coverage as a factor in setting prices. Insurance companies would be allowed to give discounts to new customers who had a history of continuous coverage with their former insurer. Insurance companies would also be allowed to increase prices for new customers who did not have continuous coverage.
Effect on the state budget:
There would probably be no major effect on the state’s income from taxes on auto insurance.
People for Prop 33 say (www.yesprop33.com):
People against Prop 33 say (www.stopprop33.org):