Mercury pours $10 million into Prop. 17 effort San Francisco Chronicle
One of California's largest insurers has sunk upward of $10 million into ads and efforts supporting Proposition 17, the auto insurance measure on the June 8 ballot, in what consumer advocates are calling a "David and Goliath" battle that they say could affect consumers for years.
The complex measure would allow drivers to keep their discount for maintaining coverage when they change insurers, while giving companies the authority to raise rates for motorists whose insurance has lapsed. Such practices are illegal under Prop. 103, a landmark insurance measure that voters approved in 1988.
For months, Prop. 17 has been the subject of charges and legal battles between Consumer Watchdog, the Santa Monica advocacy group opposed to the measure, and the group backed by Mercury Insurance Group that supports the measure.
Kathy Fairbanks, spokeswoman for Californians for Fair Auto Insurance Rates, the Mercury-funded effort, says the proposition will result in more competition and lower car insurance rates for many Californians by allowing drivers to keep their "continuous coverage discount" even if they change insurers.
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