Insurer trying to pass measure previously defeated last June

by Brian Leubitz

I’m not sure what Mercury Insurance Chairman George Joseph thinks will be more in his favor come next November, but he’s looking to qualify a measure stunningly similar to last year’s loser, Prop 17. Today Joseph was revealed as having donated over $8mil towards qualifying Prop 17’s virtual clone.

The current proposal, like Proposition 17, would repeal Proposition 103’s ban on considering a driver’s insurance coverage history when setting rates and premiums.  It would allow insurers to surcharge customers who had not purchased auto insurance at some point during the past five years, whether or not they had been driving.  Consumer Watchdog estimates that those surcharges would increase premiums by as much as 40% or more for millions of Californians including students who went away for college, Californians who previously used mass-transit, and the long-term unemployed.
 


It was a bad idea in 2010, and it is a bad idea in 2012.  While June 2012 might seem an inviting target for ambitious corporatisits, that is a risky gambit considering the legislation on the Governor’s desk that would restore all future signature driven measures to the general election ballot. November 2012 will not really be the opportunity to pass already-rejected crap, but it looks like Mercury Insurance will take that bet.

Because, they want to save you money, don’t you know?!?