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Auto Insurance

November 06, 1986

I am concerned about the continued rising cost of insurance premiums. I have written to the California State Insurance Commissioner along with our congressmen to ask what can be done.

My own personal insurance premiums with bare-bone coverage cost almost as much as my car is worth. And further because I live in a high accident area of Los Angeles--my premiums for liability and property damage are a $200 a year more than someone who lives, for example, in Glendale. Yet because I don't like driving freeways I live only six blocks from my work and I often walk.

Others with fixed incomes or pensions suffer the same increases. Since they cannot afford to pay as much as $600 plus a year--they simply don't get insurance.

Another case I am familiar with was involved in an auto accident with a person who had no car insurance. His insurance company received a claim that it felt was so outrageous it went to court. And lost!

Another person is going to pay off the balance of $1,000 on his car in order to drop the $1,000 a year he pays for collision on his insurance policy.

My letters to the State Insurance Commissioner Roxani M. Gillespie and to the congressman in my district stated the following suggestions:

A ceiling should be placed on all insurance claims--particularly those going into court. Some kind of re-evaluation on insurance rates needs to be assessed rather than by area. For instance, how many miles driven per year, the distance between home and office, prior accident incidents and driving record, along with numbers of vehicles insured and method of parking. Finally, some adjustment made so people on fixed incomes can afford at least minimal coverage for liability.


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