Editorial, FRESNO BEE
There’s another anti-consumer initiative on the June 8 ballot in California. It’s Proposition 17 and its sponsor, Mercury Insurance, claims in television advertisements that it will help motorists when buying auto insurance. Just like its neighbor on the state ballot, Proposition 16, this is a measure aimed at increasing profits for its sponsor.
We’ve already told you about how PG&E has manipulated the Proposition 16 campaign to limit competition, and we have urged a “no” vote on that power grab. Mercury Insurance is also running a misleading campaign on Proposition 17, and voters should cast a “no” vote on this insurance scam.
In 1988, voters approved Proposition 103, which instituted major changes in auto insurance to protect consumers from arbitrary rate increases and to encourage a competitive market. Since then, Mercury Insurance, the state’s third-largest auto insurer, has been trying to change this consumer protection law.
The measure, under the pretense of offering discounts to those who provide evidence of prior insurance, would actually allow insurance companies to charge other customers higher premiums.
Drivers who let their insurance lapse for more than 90 days could be charged excessive rates. Even if the insurance lapse comes because of legitimate reasons — attending college and not needing a car, serving in the military, suffering from a temporary illness — carriers could raise the rates.
Motorists are required by law to carry auto insurance when they drive in California. But Proposition 17 would in effect require them to carry auto insurance even if they aren’t driving, just so they won’t be gouged when they return from college, the military or recover from an illness.
The only reason for this measure is to increase the profits of auto insurers. This is one more instance in which voters must ignore the self-serving propaganda of an initiative sponsor.
Voters should stand by the 1988 auto insurance law that protects consumers. Vote “no” on Proposition 17.
Tags: big corporations, consumer, deceptive, Editorial, Prop 17, voters
