The California initiative to establish portable persistency discounts for automobile insurance generated enough signatures to be placed on the November ballot.  It is called Proposition 33.

The ability to transfer your safe driving record to other insurance companies seems like a no brainer, but as with most things there is a flip side.

Proponents say it will benefit drivers with good driving records as they will be able to shop their good driving to other companies.

Opponents such as Consumer Watchdog, say the law is really about rate hikes, particularly for those who have been uninsured, even if for a brief time.  They say that people, whose coverage lapsed for any reason, even health reasons, will pay the equivalent of a surcharge and will not access to the same rates that constantly insured drivers pay.

The key supporter of the bill is the owner of Mercury Insurance.  He is personally supporting the initiative, but keeping Mercury’s assets out of it.  He says that the proposition will do nothing but lower rates.

Bring on the November election.