A new law in California will help those who have been continuously maintaining their auto insurance coverage. This is a great support for those who kept paying and did not try to “save” by cheating and driving without auto insurance.

The Continuous Coverage Auto Insurance Discount Act will come to power on June 8, 2010. Before it the insurance companies are allowed to give discounts to their existing customers for staying with them for a while, but if a vehicle owner decides to switch a carrier, the discount is impossible. The new law allows taking the continuous coverage discount and carrying it over to the new company. As a result of this the companies will become more competitive and the prices of the premiums might be reduced.

The discount should touch about 80% of California drivers who have been keeping their insurance continuously. The price of the policy will still be based on driving record, distance traveled annually, experience and some other factors, but the new discount will be a great reward to those who want to stick with the law and keep their insurance in good shape. The Secretary of State in California promises that other discounts like good driver or student discount will not be taken away either.