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| September 23, 2009 |
| Don't Trust Mercury... |
| Posted By Scott E. White |
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In these tough economic times, the jobless rate has increased and many of us that are still lucky enough to have jobs have seen our salaries decline. At a time like this, every penny counts. Since we all know this to be true, why is the insurance industry proposing ways to take more money from the middle class?
In August, Mercury Insurance Company created a ballot initiative that would raise your insurance rates if you were involved in an accident that was not your fault! Since 1989, Californians have been protected by Proposition 103 which combats unfair rate increases. Mercury and the rest of the insurance industry would like to eliminate Prop 103.
Mercury has donated $500,000 to this ballot initiative so motorists would be forced to pay increased premiums for reasons that have nothing to do with their level of risk. The initiative would allow insurance companies to raise rates on (1) motorists who stop driving for a time and then restart their coverage (2) a motorist involved in an accident, even if it was not their fault (3) anyone who makes a late payment.
Here is the official title and a summary of the actual ballot initiative from the California Attorney General's office:
ALLOWS INSURANCE COMPANIES TO INCREASE OR DECREASE THE COST OF
AUTO INSURANCE BASED ON A DRIVER’S COVERAGE HISTORY. INITIATIVE STATUTE.
Allows insurance companies to raise the cost of auto insurance based on
the absence of prior automobile insurance coverage. Allows insurance
companies to lower the cost of auto insurance for drivers who have
continuously maintained auto insurance coverage, even if they change
insurance companies. Allows insurance companies to consider “claims
experience” when calculating the amount of any such reduction or when
determining which drivers will be eligible for it. Summary of estimate
by Legislative Analyst and Director of Finance of fiscal impact on
state and local governments: The measure would have no significant
fiscal impact on state and local governments. (09-0021.)
Don't be fooled by the fact that they state they want the power to DECREASE your premiums. Insurance companies have always had the ability to decrease premiums, it's the power to further increase premiums that they want.
Read more about this from Consumer Watchdog News.
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