California Proposition 33 is an Automobile Insurance Persistency Discount, if passed this Nov 6. It will allow insurers to give discount to new customers who can prove they were previously covered by auto insurance in the last five years.

These discounts are known as “persistency discounts” or “loyalty discounts” as of now under the California law, insures can only offer this discount to existing customers.

In other words Prop 33 will allow discounts to only those who have had previously insurance coverage. This will also allow insurance companies to set prices if drivers previously carried auto insurance.

‘I’m voting NO on Prop 33. I been with the same insurance company for 10 years.” “ I deserved to get a discount,” said Monica James a RN at Children Hospital.

“I will not support this proposition, I’ve not had automobile insurance because I choose not to drive.”

“So If I decide to drive again that means I might be rated higher because I took a break from auto insurance,” says Lisa Lopez, a house wife.

Those in favor say that Prop 33 allows you to freely shop around insurance companies without losing your discounts. You’re also rewarded for being a good driver under this Proposition.

Those that are against say that you should have to pay a higher rate just because you choose not to drive for good cause.

Even if you had perfect driving record, if you’ve been without insurance you will pay a higher rate for being without it.

Many people choose to take a break form auto insurance because of the economic crisis our state is going through, mention Rosey De Vale an insurance agent. “Yes it’s a law that all drivers carried on auto coverage, but only 85 percent of drivers follow the law,” said De Vale.