Before 1988, California was among only a small handful of states that had no state-governed regulations on the insurance industry. As a result, California auto insurance rates kept climbing to levels that were not affordable to many people.
To combat what many saw as unfair insurance rates, Californians voted into law Prop 103 on November 8, 1988, which called for consumer-driven regulation on insurance companies.
Under Prop 103, insurance companies were required to cut their rates to 20% less than what they were in 1987. Any rate changes from that point would have to be approved by the California Department of Insurance.
Among the provisions of Prop 103 are rules regulating how insurance companies determine your car insurance premiums and the Good Driver Discount policy.
Good Driver Discount Policy
Because of Prop 103, California law requires insurance companies to offer a 20% discount to good drivers. You qualify for this Good Driver Discount policy in California if:
- You have been licensed to drive for the past 3 years.
- During the past 3 years you have not:
- Had more than 1 point on your driving record due to a violation(s).
- Taken traffic school because of a traffic violation more than once.
- Been the at-fault driver in an accident that resulted in injury or death.
For more information on the Good Driver Discount policy, get in touch with one of our agents at UniAmerica Insurance by calling us 310-835-3373 or contact us on our website.