Advertisement
 
YOU ARE HERE: LAT HomeCollectionsDiscount

California's Proposition 33 auto insurance initiative lagging

November 06, 2012|By Marc Lifsher
  • Mercury General Corp. Chairman George Joseph spent more than $16 million to pass Proposition 33, which was trailing late Tuesday.
Mercury General Corp. Chairman George Joseph spent more than $16 million… (Wally Skalij / Los Angeles…)

SACRAMENTO -- Proposition 33, an auto insurance initiative bankrolled by 91-year-old Mercury General Corp. Chairman George Joseph, was struggling late on election day.

With about 29% of the votes counted statewide, the measure had only 46.9% of the vote in favor, with 53.1% opposing.

Critics of Proposition 33, led by Santa Monica-based Consumer Watchdog, said they expected the no vote to grow even larger after the bulk of votes are tallied in populous Los Angeles County.

The measure would have changed part of a nearly quarter-century-old initiative that regulated auto insurance in California and specifically banned insurers from offering a type of discount provided by Proposition 33.

The initiative would provide a special rate for previously insured drivers even when they switch insurance companies. The discount, Joseph said, would reward responsible motorists who comply with the state's mandatory insurance law.

But providing that discount, Consumer Watchdog argued, could unfairly raise rates for newly insured drivers and people who had been previously uninsured for a variety of reasons, such as not owning a car.

Indications that voters are rejecting Proposition 33 is evidence that "insurance companies or insurance billionaires or any other special interest can't buy the vote," No campaign head Jaime Court said.

The Yes on Proposition 33 campaign did not respond to requests for comment.

ALSO:

A few wealthy individuals who bankroll initiatives

Proposition 33 is billionaire's attempt to manipulate public policy

Proposition 33 revives fight over auto insurance ratings

Advertisement
Los Angeles Times Articles
|
|
|