California Drivers Could Benefit from Continuous Auto Coverage Discount

If you’re a California resident who’s carried continuous auto insurance, you may benefit from an act on the table that asks for a loyalty discount. The Continuous Coverage Auto Insurance Discount Act, if passed on the 2010 ballot, will allow drivers to receive a discount for continuous auto insurance coverage, even if they switch providers.

The Basics of the Act

Currently, drivers in California who stick with one insurer for several years are offered a loyalty discount for remaining insured with them. However, according to the Continuous Coverage Auto Insurance Discount Act, drivers will have the opportunity to receive an auto insurance discount for maintaining continuing coverage even when they switch providers.

The Benefits of the Act

A few benefits can come out of this act, including:

  • Cheaper auto insurance: Consumers could benefit from cheaper auto insurance rates simply by remaining insured.
  • Greater flexibility: Now, if consumers find a cheaper insurance provider, they may not feel obligated to stick with their current provider for fear of losing their discount.
  • More insured drivers on the road: The incentive to remain insured could help provide California roads with more insured drivers.
  • Decreased rates: Since drivers would be able to carry the discount with them, insurers would likely lower their rates to keep their current customers and attract new ones.

California is not the only state participating in the continuous coverage discount. States like Texas, Oregon, Florida, New York and Washington already allow insurers to offer this type of discount.

Do continuous coverage discounts sound attractive to you?