Stop Prop 17: Mercury's New Deceptive Mailer: Military Members Must Not Be 'Responsible' Drivers

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May 21, 2010, 04:10 ET

SANTA MONICA, Calif., May 21 /PRNewswire-USNewswire/ -- The insurance company sponsor of Prop 17 is peppering the state's voters with new mailers that tell our military servicemen and women that they are not responsible drivers if they serve their country stateside without a car. Consumer advocates fighting Prop 17 said the flier, which promises "Lower rates for responsible drivers," denigrates our nation's military, only because they don't bring their car to base while on duty.

"The insurance company backers of Prop 17 are saying that people like servicemen and women who don't drive while on base are irresponsible if they drop car insurance during their service," said Brian Van Riper, Iraqi war veteran and retired Lance Corporal, US Marines. "What's irresponsible is this insurance company initiative to punish good drivers who have done nothing wrong."

Prop 17 would create an insurance surcharge on drivers, including soldiers, who have had a lapse in car insurance coverage for virtually any reason during the past five years, or whose policy was cancelled after missing a single payment. Under the measure, people who stopped driving and didn't need insurance for a time would be required to pay up to a thousand dollars more for car insurance when they sought to restart coverage. Currently, insurance companies are prohibited from imposing such a surcharge in California.

Prop 17 is opposed by military, consumer and citizen groups including VoteVets.org, USAA, Consumers Union, Consumer Watchdog, Consumer Federation of California, and California Alliance of Retired Americans.

The San Diego Union-Tribune in its rejection of Prop 17 wrote:

...there are two reasons to have sharp doubts about Proposition 17.

The first is that Proposition 17 is a perfect example of the deplorable way the state initiative process is used by private companies for their own benefit.

The second has to do with the fact that a member of the U.S. military would not be protected from losing his or her "continuous coverage" discount if transferred within the United States. The protection extends only to those transferred abroad. This is why the United Services Automobile Association, an insurer which specializes in military families, strongly opposes Proposition 17.

Especially in a time of war – and especially as the newspaper of a community with such a rich history and relationship with the U.S. armed forces – we find this very difficult to accept.

For this reason, we recommend a "no" vote.

The campaign in favor of Prop 17 is 99% funded by insurance companies, with Mercury Insurance having spent over $10.3 million to date.

Doug Heller with Stop Prop 17 said today, "Mercury has just added insult to injury. First they propose Prop 17, which allows insurance companies to surcharge military members a thousand dollars a year, then they cast servicemen and women as irresponsible and not deserving of consumer protections. Good drivers, in or out of the service, should reject Prop 17."

For more information, please visit: http://StopProp17.org or find us on twitter at: http://twitter.com/stopmercury and facebook at: http://www.facebook.com/stopprop17

Stop Prop 17 is sponsored by Campaign for Consumer Rights, a nonprofit organization. Campaign for Consumer Rights does not endorse or oppose any candidates for election.

SOURCE Consumer Watchdog