Prop 103

Proposition 103 was enacted into law in November of 1988. Proposition 103 provides many consumer protections related to purchasing and maintaining Automobile Insurance. Some of the key provisions of Proposition 103 protections and consumers rights related to automobile insurance can be found below:

• Good Driver Provision: Proposition 103 established a legal definition of a "Good Driver" in this state. As defined a Good Driver is a person who has been licensed for three years and has one or less points on their motor vehicle record. The consumer rights that are created from the Good Driver provision are that no insurer can refuse to offer coverage if you qualify as a Good Driver and that Insurer is required by law to provide a Good Driver discount of 20% to all eligible applicants. Please call us for details.
• Cancellation/Non-Renewal Provisions: Proposition 103 established new criteria which determine an Insurer's ability to cancel or non-renew your policy. Once a automobile policy has been issued the only reason an insurer can cancel/non-renew that policy are:
  1. Fraud/Material misrepresentation.
  2. Nonpayment of premium.
  3. Substantial increase in the hazards insured against. Please note: Notice requirement mandated by the California Insurance Code requires 10 days notice to you before canceling your policy for nonpayment of premium. Additionally the Insurance Code requires 20 days notice to you of renewal or 30 days for non-renewal.
• Determination of Rates: Proposition 103 established uniform guidelines upon which your automobile rates would be determined. The primary factors being:
  1. The individual's driving safety record.
  2. The number of miles he/she drives annually.
  3. The number of years the insured has been driving. There are secondary rating factors like where the insured lives, marital status, age, etc. that are currently used to determine rates.