THE LEGISLATURE ADJOURNS : Strict Law Mandating Auto Insurance to Expire on Jan. 1

The mandatory auto insurance law under which hundreds of thousands of California drivers have had their licenses suspended in the last three years was not extended by the Legislature before it adjourned Saturday and is likely to lapse on Jan. 1, officials said.

An earlier mandatory insurance law, which requires drivers to submit proof of having liability coverage only after having an accident, will remain on the books.

The law requiring that all motorists stopped by police for traffic violations show proof of insurance--which meant much tougher enforcement of the mandatory rule--will expire at the end of the year unless the Legislature takes emergency action to continue it when it convenes a new session in December.

The chairmen of both the Assembly and Senate insurance committees said this is not expected.

Sen. Alan Robbins (D-Tarzana), who authored the 1985 law for stiffer mandatory insurance enforcement, only to see it challenged in court and delayed until late 1987--said he decided that because the Legislature had failed to provide for an affordable no-frills policy, it would be unfair to extend his law beyond its prescribed sunset at the end of this year.

Efforts by legislators and Gov. George Deukmejian to reach a compromise on low-cost policies, priced from $180 to $600 a year, fell victim to disputes between powerful insurer and trial lawyer lobbies, and never came up for action in the closing days of the session. Lawyers, in particular, objected to any changes that would reduce a person’s right to sue or recover damages for pain and suffering.

A report by the state Department of Motor Vehicles estimates that 25%, or about 5 million, California motorists are uninsured. In many traffic courts, license suspensions because of failure to carry insurance are the most frequent actions taken. In parts of Los Angeles’ south and east sides, the uninsured rate is believed to exceed 80%.

Recent action taken by insurers who run the assigned risk auto insurance system to stop enrolling drivers with good records had the effect of drastically increasing insurance prices in urban areas for such drivers.

Robbins said that he fears the number of uninsured motorists may now soar even higher. He said this is preferable to forcing many low-income drivers to choose between paying for food or shelter and buying auto insurance.