Tuesday, Oct 09,2012
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Californian voters are currently being inundated with advertisements regarding Proposition 33, but many don't realize that it could lead to higher auto insurance rates, according to the Los Angeles Times.
BallotPedia states that the new proposition purports to provide lowered insurance rates to many consumers by providing discounts to drivers who have had an auto insurance policy for at least five years.
However, The Times points out that the new legislation could in fact increase rates for many consumers, since it allows providers to research a driver's insurance history and give raised rates to new car owners and those who have let an old policy lapse.
Opponents of the new legislation point out that it overrides an important piece of an older law, which expressly states that insurance providers are not allowed to use a driver's insurance history as a factor when determining rates.
Consumer Watchdog, a non-profit group, has filed a complaint with the state's Fair Political Practices Commission, stating that ads supporting the new legislation are part of a "deceptive campaign" and make use of paid spokespeople that they claim are regular insured drivers.
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