Big Changes in California

Regulation 103, is currently defining the procedure for functioning of the insurance market in sunny California, may be radically revised. The author of the current legislation subjected to harsh criticism of the new initiative, considering it an attempt to raise prices for millions of drivers.

Harvey Rosenfield, the initiator and developer of the Regulations adopted in 1988, 103, which is currently the head in for in these non-profit consumer protection Consumer Watchdog, which specializes in insurance, pays attention to the fact that after the new law, any driver who, for whatever reason 90 consecutive days was not insured, will be forced to pay far greater then the sum. Height can be up to 70%, he says as an example calculation for one of the drivers from the state of Nevada.

The new initiative has been prepared by the insurance company Mercury Insurance, which has already spent about $ 3.5 million in order to achieve the production of the project to the vote, scheduled for June 8 this year. Proponents argue that a new procedure for calculating the premiums will enable millions of Californians to get a small discount when you change insurance companies.

According to the current Regulation 103, three main factors that influence the amount of insurance premiums – a mileage for the year, the number of years driving experience and the number of break-even years away. Additional factors may add an authorized person – Commissioner – home insurance the figure staff. Among these factors – the discount for the fact that the customer remains with the insurance company for a long period of time. Under current law, this discount can not be moved by changing your insurance company. The new initiative will introduce such a possibility.

"The fact that I can not get your discount when you change to a company means that I can not get the new insurer's the price that I deserve," – says Kathy Fairbanks, spokeswoman for the Public Organization Fair Auto Insurance Rates, based initiators of the new project. She calls the example of a driver from Nevada comparing "apples to oranges," explaining that the California insurance market is unique.

The other side points out that the new initiative will put California on par with other states which already have similar laws, and notice that there are many legitimate reasons why a driver for three months may not be insured – it is military service, studied at the College when the machine is simply not needed, long-term illness, etc.

"Competition in the California insurance market is very high," – stated by Consumer Watchdog. – "With very few exceptions, everyone can find a cheap insurance."