Thursday, January 28, 2010

Of Stagecoaches And Continuous Coverage Discounts

It's generally accepted, albeit not authoritatively documented, that most stagecoach providers during the wild West days had a set of rules, or at the least broad hints, for passengers. Mixing common sense ("never attempt to fire a gun or pistol while on the road, it may frighten the team; and the careless handling and cocking of the weapon makes nervous people nervous") and courtesy ("don't smoke a strong pipe inside especially early in the morning"), one rule has survived to this day as advisable for those wishing to keep things peaceful in mixed company: don't discuss politics or religion.

Which naturally leads to a discussion of politics.

One of the ballot measures now qualified for the June primary in California would, if passed, allow auto insurance companies to base their prices in part on a driver's history of insurance coverage. Presently, many insurers, including CSE, offer a persistency discount on certain kinds of policies. The longer a customer stays with us, the lower their premium. It's a tangible thank you for loyalty. However, the law currently prohibits an insurer from offering a similar discount to a policyholder presently with a different carrier.

If passed, the ballot measure would encourage greater competition among insurance providers by leveling the field. If Company A doesn't have an immediate disadvantage over Company B due to the insured having been with Company B for a certain number of years, Company A is free to tout both price and service without price being a penalty. This can result in only good things for the public, as insurance providers will be looking to gain position in the marketplace. You won't see reckless price slashing, but you will see those companies with proven track records of standing by their customers when they need them shining even brighter. Like us.

And we promise a smoother ride than the average stagecoach!

1 comment:

  1. Fun and interesting information, Jerry. Thanks for the blog. I will do my part in getting this information out. I, for one, hopes this passes.