There has probably been no problem in state government more intractable than that of making mandatory automobile insurance a fact rather than a dictum.
For the past quarter-century, efforts to require every driver to carry a minimum policy paying at least some damages to those not at fault in accidents for injuries and loss of property have been thwarted by a significant minority of the driving population, either unable to afford or unwilling to buy the policy.
Three years ago, the most rigorous attempt yet to force drivers to be insured, authored by then-Bay Area Assemblywoman Jackie Speier, became law, requiring proof of insurance when a driver was stopped for another violation or paid the annual vehicle registration fee. It had long been required that anyone involved in an accident show such proof.
Under Speier's law, the fines authorized were draconian, reaching, with court fees, $1,350 for a first offense. The statute also provided for the withholding of registration. The fines were so heavy that many judges refused to assess them, some police agencies in poor neighborhoods refused to issue citations, and even Speier, now a state senator, says she didn't realize the court fees would more than double the basic $500 fine.
After two years under this law, the state Insurance Department reported that the proportion of Californians driving without insurance had declined from 28% to 22%. More than 5 million remained uninsured. However, accidents involving uninsured vehicles dropped by a third.
The statute enacted by Speier's bill was due to expire Dec. 31. Legislators, particularly from low-income areas, and insurance reformers put Speier on notice that unless a low-cost auto policy was made available, they would not support renewal.
Now the Legislature has passed bills by solid majorities that both institute a "pilot project" of low-cost insurance for three years in Los Angeles County and San Francisco, and renew the proof-of-insurance law, with less stringent fines. The first-time penalty, including court fees, would drop to the $500 range. This would be reduced to the $200 range, including court fees, if a violator went right out and bought the insurance.
Spokesmen for Gov. Gray Davis won't say if he will sign the bill. But the authors expect that he will. If he does, the California Assigned Risk Plan must begin the pilot project by July 1.
