Wednesday, September 21st, 2011 at
1:41 pm
George Joseph, chairman of insurer Mercury General Insurance Company thinks you should you penalized under the law if you previously did not have car insurance. As much as 50%! But he needs a law to make that happen, because it’s currently illegal thanks to Prop 103. Prop 103 has saved Californians’ tens of billions, by redlining, or prohibiting ZIP Code based premiums and charges based on prior insurance coverage. Ever since, premiums in California were based on the insured’s records like years driving, driving record and annual miles.
If you had your car repossessed, become unemployed, sold your car and didn’t need one for awhile, or telecommuted, or lived in the city, George Joseph thinks you should pay more. He’s putting up $8 million to get his initiative on the June 2012 ballot. And he’s spent millions in the past.
Voters have rejected George Joseph’s intitiatives for 20 years. The last reincarnation was Proposition 17
which the voters rejected last June (2010), even though the company spent over $10 million on the campaign. The latest life form of Mercury’s reverse discount exempts military and the long term unemployed. If you stopped paying for car insurance for a variety of other reasons, you could be charged over 50% more.
Outside of California, there’s no prop 103 protections, so Mercury jacks the premium over 50% higher for car insurance if you did not have prior coverage.
This initiative has great timing, with poverty rates hitting multi year highs. In the past, Mercury and others have charged inner city, higher crime areas a high premium. Not based on driving records or accidents, but only based on an urban higher loss zip code and not having prior car insurance.
Joseph has been trying to undo Proposition 103 since California voters enacted it. He claims he simply wants to woo other insurance companies’ longtime customers. His bet is that a conservative electorate turning out for the June 2012 Republican primary will be unconcerned about making coverage unaffordable for the working poor.
Since Mr. Joseph is paying for the new initiative personally, it’s not tied to Mercury. And He exempted the military, to win over veterans groups.
First Mr. Joseph’s initiative must qualify for the ballot, then vote for it in the general election. that people who don’t drive would be financially penalized for not having insurance.
A billionaire should not be able to abuse the political process by regurgitating the same initiative that’s been defeated over and over, simply to line his own pockets.