The debate over the California car insurance "loyalty discount portability" initiative is heating up. But what in the heck does "loyalty discount portability" mean? And why should you care?
Basically, the "loyalty discount portability" that Proposition 17 would provide just means that car insurance companies in California will be able to give drivers a discount for having continuous coverage, no matter what company that coverage was with. Right now, only your current company can offer you a discount for having continuous coverage with them.Proponents argue that this will make the market more competitive and potentially drive down car insurance rates for drivers who have maintained coverage. Opponents argue that by rolling back some of the protections in Proposition 103--passed in 1988--car insurance companies will be able to raise rates for drivers who have not had continuous coverage, such as military personnel serving out of state.
Who should you believe? It's difficult to say--most insurance industry types are supporting the measure, while many consumer groups are coming out against it.
My sense is, if you're one of the tens of millions of California drivers who have maintained continuous coverage over the years, you may very well come out ahead and have more affordable options to consider. If you haven't had continuous coverage, the jury is probably still out.
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