Friday, September 14, 2012

Both Sides Accuse Each Other of Going to Far Over Prop 33

The fight over a proposition that would change how auto insurance companies can set their prices has turned ugly after both sides accuse each other of going too far. Proposition 33 would allow auto insurance providers to raise prices on customers with no previous coverage or lapses in their coverage, as well as offer discounts for drivers with uninterrupted coverage to lure them away from other companies. A similar proposition, prop 13, was narrowly defeated two years ago. Prop 33 would carve out exceptions, allowing for coverage lapses for active duty military service and for individuals who have been unemployed for less than 18 months. Supporters of the initiative say these exceptions are key provisions that would shield many lower income individuals from penalties. Opponents say the exceptions are too narrow to make a real difference for millions of Californians who would see their rates increase. Pacifica's Dan Fritz reports from Los Angeles.