Just like the cell phone industry fought for you to be able to take your phone number from one company to another, the auto insurance industry in California wants you to be able to take your discounts with you.  According to Car insurance discount act could give break in prices, Nannette Miranda of Californias ABC News10 says that your continuous coverage car insurance discount could become portable.

If the 2012 Automobile Insurance Discount Act passes, any driver who receives a discount for retaining continuous auto insurance coverage from one company would be able to take their discount to another company.  If this does not pass, companies will still be prohibited from giving discounts based on past coverage with another auto insurance company.  This initiative does not take into account any type of discounts for being a good driver.

A campaign consultant argues that this will allow for greater competition in the marketplace as companies can charge better rates.  The Consumer Federation of California disagrees.  They say that people who have been uninsured for any period of time will be hurt by 40-50% surcharges on their insurance coverage, even if they were uninsured because they didnt have a vehicle.  Mercury Insurance tried to pass a similar initiative two years ago to no avail.  There are some people who believe Mercury is behind this initiative as well.

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