According to a proposal, the insurance consumers of California who are consistent in maintaining their automobile insurance cover; may now have to pay lower automobile insurance rates as well as increase discount. The proposal will also fix an inconsistency in the law.
Under the current law, insurance customers get some discount for consistently maintaining their automobile insurance coverage. This is also known as loyalty discount, which is, however, cannot be carried forward if the consumer changes his or her insurance company.
The new act, also called Continuous Coverage Auto Insurance Discount Act, all drivers will get this discount even if they change their insurance service provider. Ultimately, if passed, the new law will benefit the consumers. About 82% drivers of California continuously maintain their automobile insurance coverage, as is required by the law.
For any California auto insurance company, the markets will now be even more competitive since all insurance companies will now be able to offer same discounts to all their consumers. All companies will now have to come up with better service, better plans and lower prices. Many states already provide this benefit to insurance consumers. These states include New York, Texas, Oregon, Florida and Washington, among others.
Your insurance policy rates will continue to depend on your driving safety record, miles driven every year and your driving experience. The student discount or good driver discount will continue to be in place.
