Proposition 17: Auto Insurance Surcharges Initiative Statute

From Mobilize the Immigrant Vote

What is Proposition 17 - The Auto Insurance Surcharges Initiative Statute?

If approved, Prop 17 will allow drivers who go five years without a 90-day lapse in coverage to keep their “continuous coverage” discount when they switch insurers. While this covers most California drivers, those who have not retained continuous coverage may be charged surcharges.

MIV Analysis

Consumer advocates argue Prop 17 will unfairly punish low-income or unemployed drivers who may have struggled to pay for car insurance continuously. Immigrant advocates are concerned that low-income immigrants, and particularly immigrants who have had lapses in legal status, will suffer most under this law. Prop 17 allows insurance companies to raise auto insurance prices for customers who didn’t have auto insurance at some point in the past five years even if they weren’t driving or didn’t have a car, which may include senior citizens and students. Through late April, Mercury Insurance was responsible for about 98% of the funding for the "Yes on 17" campaign, having contributed $5.25 million altogether.

Key Supporters & Opponents

Supporters of Prop 17 include Californians for Fair Auto Insurance Rates (Cal-FAIR), a coalition of Mercury Insurance, the California Chamber of Commerce, the California Black Chamber of Commerce, the California Hispanic Chamber of Commerce, the League of United Latin American Citizens, and the California Taxpayer Protection Committee.

Opponents include Consumer Watchdog, the California labor Federation, and the California Democratic Party.

Recommended Vote: NO