California Repeal of Mandatory Auto Insurance Initiative (2010)
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Ballot label details
Ballot title: Repeals Laws That Require Every Driver to Maintain Automobile Liability Insurance. Initiative Statute.
Official summary: Repeals laws that require drivers to maintain automobile liability insurance and to carry proof of that insurance. Maintains mandatory liability insurance requirements for drivers of commercial vehicles and drivers who have been convicted of certain vehicular crimes. Repeals laws requiring insurance companies to electronically report vehicle liability insurance information to DMV. Repeals laws providing for the imposition of fines and suspension of driving privileges for drivers who fail to provide proof of insurance at an accident.
Estimated fiscal impact: Annual state savings, probably about $25 million, due to a reduction in costs to enforce financial responsibility requirements. A reduction in state and local revenues from fines and penalties related to violations of the financial responsibility law, probably in the couple of hundreds of millions of dollars. Unknown reduction in state premium tax revenues, offset to an unknown extent by increased sales tax revenues.
Findings and declarations
The "Findings and Declarations" section of the proposed initiative says:
(a) People of the state are having to struggle to maintain auto insurance on their motor vehicles and are not always able to maintain any or adequate medical or dental insurance for themselves and their loved ones.
(b) Repealing the mandatory vehicle insurance laws would allow California residents to better control their own source of income and quality of life. The amount of premium saved by repealing the mandatory vehicle insurance laws would allow a family the necessary money to pay for important insurance like health insurance. This change in law would place a person's health and well-being at a higher priority than a bent bumper.
(c) Repealing the mandatory vehicle insurance laws would only force insurance companies to become competitive.
(d) It should not be law enforcement's responsibility to monitor for vehicle insurance compliance. Vehicle insurance should solely be a matter between the auto and insurance industry and the consumer.
(e) Most drivers do not have accidents, so continued vehicle insurance coverage needs to be a decision made by the consumer and not mandated by government.
(f) Repealing the mandatory vehicle insurance laws is not taking away the right of the automobile insurance companies to litigate for vehicle damage, but it would be totally their responsibility and not our government's concern.
Path to the ballot
- See also: California signature requirements
Sponsors must collect 433,971 signatures by August 23, 2010 to qualify the measure for the ballot.