Prop. 103 and the ‘Insurance Mess’

You are quite right in your editorial concerning the insurance mess. I am all in favor of minimalist government, but when the private sector fails to fill a need, that is when my government, funded by my taxes, should step in. The insurance companies are not doing what is necessary in this state, so the Legislature must take action.

Here is my approach: First, the law says that all vehicles in California must be covered by liability insurance. I approve; that makes good sense. Second, the insurance companies do not want to sell insurance to any driver they consider “undesirable.” We resolve that contradiction by having the Legislature set up a state-run insurance company which would sell only bodily injury and property damage liability insurance--let us say $50,000-$100,000-$10,000 at a maximum. There would be one fee, statewide, set by actuarial statistics, and competitive with free-market insurance rates.

This state-run company would merely offer an alternative to the private companies; customers would be free to choose. The advantage of buying from private firms is that they would offer additional liability, collision, uninsured driver, and other forms of vehicular insurance.

All the state would do is to provide all Californians with the opportunity to purchase basic auto insurance. Sounds reasonable, and quite desirable, to me.

CLEMENT SALVADORI

Laguna Beach