Auto Insurance in California

Harvey Lerer’s letter (April 13) claims that the no-fault auto insurance initiative would limit the injured victims’ rights to fair compensation and access to the courts. These accident victims have no inherent right to receive any particular benefits. They have only the rights society wants to give them.

The members of society who pay for insurance either by direct purchase or through buying goods or service where the cost is passed on seem to have decided that they don’t want to fund the present tort system in its entirety.

The insurance rates are high because the losses paid by insurance companies have been increasing rapidly. This is the result of an astronomic increase in medical costs and continual expansion of tort and insurance company liability by the courts.

The consumers should revolt. But they should understand the facts before deciding what to do to solve the problem. The insurance rates reflect the losses paid. Reduce the losses and rates will follow.

The no-fault auto initiative will cut down on losses paid and the cost of processing the present tort system which takes 54 cents out of every dollar.

If you don’t mind paying for the present system, then vote no on all initiatives. If you favor a fair and workable solution, vote “yes” on the no-fault auto insurance initiative--it mandates a 20% reduction in liability rates.

Lerer as a trial lawyer does not mention the $7 billion plus that these personal injury lawyers take home in fees every year nationwide.

HARRY D. BOYD

Harbor Insurance Co.

Los Angeles