This initiative was placed on the ballot by Mercury Auto Insurance, which spent $2 million to pay signature gatherers and has spent over $5 million on the campaign in support of the proposal.
Prop 17 would undermine some of the protections in the landmark Prop 103, approved by voters in 1988 to reform the auto insurance industry. Specifically, Prop 17 would allow auto insurance companies to charge people more money if they have a lapse in coverage, even if that lapse is as short as a few hours. Current state law forbids this practice.
Arguments for: Prop 17 would produce cheaper auto insurance rates for most drivers, and increase competition among insurers.
Arguments against: This is nothing more than Mercury Insurance trying to wring more money out of already squeezed consumers. Mercury has already tried to do this and was slapped down by the courts, and in states where insurers can charge more for a lapse in coverage, many drivers wind up paying significantly more money for their auto insurance. This would punish people who have legitimate reasons for a lapse in coverage, including veterans.
Yes on Prop 17 website
No on Prop 17 website