Auto Insurance Transfer Discount Remains Disallowed in California

Insurance Navy describes the defeat of California Prop. 33 as 'unfortunate." With all California precincts reporting their final 2012 votes, Prop. 33 was defeated after 54.6% of people voted in favor and 45.4% voted against the Proposition.

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Affordable Auto insurance quotes, Illinois SR22 rates in Crest Hill, Shorewood, and Joliet

Auto insurance quotes, Illinois SR22 rates in Crest Hill, Shorewood, and Joliet

If insurers are asked to set the same flat rate for everyone in the population, it will be similar to asking hospitals to charge patients the same amount for their hospital stay, regardless of the cost of treatment and stay.

Joliet, Illinois (PRWEB) November 09, 2012

With the Californian 2012 Auto Insurance Discount Act, Cali. Prop. 33, defeated; auto insurance transfer discount will remain disallowed in California, thanks to the efforts of certain consumer groups! If passed, the proposal would have allowed insurers to provide auto insurance shoppers some discount for having continuous prior insurance coverage with other carriers.

Ed Snenneh of Insurance Navy, an insurance agency offering auto insurance quotes in Illinois described the result of the vote as "unfortunate!" "Insurance consumers in Illinois do have this discount just like residents of 47 other states, and neither legislators not the public in all 48 states perceive this discount as a dishonest practice by the auto insurers, like the way backers of the California Prop. 33 were portrayed by the so called consumer groups in that state."

"Discounting a specified car insurance rate because the client shows proof of prior auto insurance is not a punishment to the people who did not have the prior insurance, as consumer groups like to argue. The discount is simply a reward for the people who had continuous auto insurance coverage. Auto insurers have found statistical positive correlation between having prior continuous coverage and lower losses paid by the insurers. If you were an auto insurer you would not hesitate to share this saving of lower claim costs with the people who contributed to this saving- the people who had the continuous coverage." Snenneh added.

Some consumer groups in California headed by the Santa Monica's Consumer Watchdog accused the principal backer of Prop. 33, Mercury Insurance Chairman George Joseph of acting to serve the interests of his company. Joseph, according to the group, spent millions of dollars of his money to push for a vote in favor of Prop. 33. This act was perceived as 'dishonest and self serving act' by the consumer group. The group went on the offense late last year when it challenged Mercury's auto insurance rate increase; arguing that the increase in the rate of Mercury Insurance Company came as a result of overspending to back a similar proposition, Prop.17, which was also defeated. Mercury argued that the costs were paid by stockholders, not the public.

"Insurance companies hire actuaries who work with mathematical models to determine the competitive and profitable auto insurance rates, surcharges and discounts. They base their analyses on factors such as ZIP code, gender, age, marital status, driving history, credit score, etc. which sound discriminatory," Snenneh said. People in each class tend to have similar characteristics when it comes to the frequency and the size of the claims they cost to the insurers. "If insurers are asked to set the same flat rate for everyone in the population, it will be similar to asking hospitals to charge patients the same amount for their hospital stay, regardless of the cost of treatment and stay," Snenneh said.

About Insurance Navy Brokers
Insurance Navy is a leading provider of auto insurance, Illinois SR22 insurance quotes, homeowners insurance and business insurance. The agency serves its clients online, by phone, and through its many branches in the area. The agency is licensed in the States of Indiana, Wisconsin and Illinois.

Contact Details
Insurance Navy
Address: 18 South Larkin Avenue, Joliet, IL 60436
Phone: (815) 725-4700