Prop. 33 would change state law to allow insurance companies to set prices based on whether the driver previously carried auto insurance with any insurance company. Companies would be allowed to give discounts to drivers who had prior coverage. Drivers who have not had continuous coverage could be charged at higher rates under the measure.
For more information on this proposition, including voter resources, in-depth analysis, and endorsements, please see the California Choices web site.
Proponents of the Prop. 33 believe that California's current law punishes drivers for seeking better or cheaper insurance by taking away the discount for being continuously insured. They say that the measure will correct the law and make the consumer in charge of the discount.
Opponents claim that Prop. 33 is financed by insurance companies and will allow them to increase premiums and punish consumers. Opponents also believe the measure's continuous coverage provisions will result in a surcharge for many California drivers.