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Californians could save on auto insurance

Posted On Tue, June 1, 2010

A new proposition in California could see greater competition among auto insurance providers.

Proposition 17, which comes up for a vote on June 8, would allow consumers to take their continuous coverage discount from one insurer to the other, said a report on ABC10 News in San Diego.

But many are unsure whether or not the new proposition would actually save money for Californians, the report said. Opponents say that stopping coverage for 90 days could force consumers to pay a surcharge of more than $1,000, while supporters point out that it would save the average Californian about $250 a year.

But insurance companies are the biggest supporters of the bill, and have shelled out millions to promote its passage.

"When was the last time an insurance company spent millions of dollars to save you money," one consumer watchdog asked the station. "Answer - never."

But those in the state looking for relief from high auto insurance prices may qualify for a $400-a-year plan from the state Department of Insurance. The Los Angeles Times reported that individuals making less than $27,075 a year and families of four living on less than $55,125 qualify for coverage.ADNFCR-2297-ID-19812094-ADNFCR

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