Prop. 103 Defects

The Times should rethink its fish story that Proposition 103 is good for the public (“Auto Policy Relief: Just a Big Dream?” editorial, Aug. 22). The law has many defects. For instance, it requires insurance companies to base rates on the policyholder’s driving record and mileage, and largely ignore the policyholder’s address or ZIP codes. The economics of rates based on “how you drive” rather than “where you live” are: higher premiums in low-accident, suburban areas so folk living in big cities can enjoy lower rates.

Another defect of Proposition 103 is its chilling effect on the residential fire and earthquake insurance marketplace. The law spawned an exodus of insurance companies from the state, and motivates remaining insurers to give new policyholders the fisheye. Proposition 103 is a whopper of a consumer disaster.

ROBERT TAYLOR HEINEMAN

Laguna Niguel

The writer owns an insurance agency.