Politics: Yes on 17

Prop 17 changes an aspect of auto insurance regulation. Currently, auto insurers can give loyalty discounts to customers who have been in good standing with their company but its not transferable. As in the cell phone business, it is easier to try to keep customers than try to find new ones. Thus, hypothetically, if customer Albert has been with Mercury Insurance in good standing for at least a certain number of years, they could offer him a discount. Prop 17 allows insurance companies to make that discount portable. As a result, the Progressive Insurance lady with the price gun could offer Albert that type of discount to lure him away from Mercury.

I do wonder how large this discount will be as there is a practical limit to how much the insurers can discount to both lure and keep customers and yet retain enough premiums for loss payouts and profits. Additionally, the primary determinant of insurance rates remains driving record and distance driven per year. Thus, to the extent the discounts become larger, rates would rise for those who don’t get the discount to offset reduced premiums from those who do get the discount.

Critics rightly claim that Mercury Insurance is behind Prop 17. However, since the rule change would also benefit their rivals, they don't gain the advantage all to themselves in contrast to Prop 16 which appears to mostly benefit PG&E.

Yes on Prop 17.