Proof of Insurance Checks Not Guaranteed

When Garden Grove Police Sgt. Randy Tucker pulled some drivers over for various traffic infractions one day this week, they quickly offered him a look at their proof of insurance cards along with their driver’s license and vehicle registration papers.

“I said I don’t need that right now,” Tucker, a motorcycle officer, recalled telling the surprised motorists about the insurance cards.

The reason? Garden Grove and several other local police departments say it is too expensive to enforce the state’s new proof of insurance law, which requires that motorists be cited if they cannot show proof, on the spot, that they are insured.

“We want to issue the citations, but it comes down to being a financial matter,” Tucker said. “Even if they don’t have insurance, we are charged $30.50 to process the citation, and if they do have insurance, we still get charged $17.50 per citation. It starts mounting up.”

Although they can impose fines amounting to more than $1,000, most judges dismiss the ticket with a mere $10 administrative fee once they are shown proof of insurance in court. Many will also reduce much of the fine if someone gets insurance within 30 days, said Erick Larsh, a Municipal Court commissioner in Fullerton.

As a result, the police departments say they end up paying the administrative fees and cannot count on a hefty fine to offset the cost.

Richard W. Biggins, executive officer of Orange County Municipal Court in Westminster, confirmed that the situation can be costly to the cities but he said the problem lies in the legislation, not with the courts.

“I can appreciate their problem,” Biggins said. “It’s unfortunate.”

California law requires that all drivers in the state carry auto insurance. The new law requires drivers to show evidence of insurance when officers stop them for violations. Motorists were previously required to show such proof only when they were involved in accidents.

Huntington Beach officers reluctantly stopped asking for proof last summer after discovering that in the month of April alone, the city had paid out more than $14,000 in fees associated with the new law, Police Lt. Jim Cutshaw said.

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“Frankly, it’s costing us a lot of money and we can’t afford that loss of revenue right now,” Cutshaw said.

Fountain Valley police officers were writing tickets to uninsured drivers up until September. That’s when they discovered they paid approximately $7,000 in administrative costs for just one month.

“That was a real eye-opener,” said Herbert Poe, a senior traffic officer. “We were writing tickets, then the bills started rolling in.”

Poe said 10% to 15% of all motorists pulled over for an infraction did not have proof of insurance with them.

The Cypress Police Department had also quietly stopped enforcing the law because of the prohibitive expense. But earlier this month, the City Council demanded that they resume the practice, Sgt. John Aliva.

“The City Council felt it was a decision they wanted to make,” Avila said. “Based on their input, we started doing it again until we see which way it goes.”

The Garden Grove City Council also recently requested information about the situation, according to Tucker.

“We clearly do want to cite these people for it,” Tucker said. “It’s a good citation.”

Tucker said the department would at least like to see judges impose a fine that covers the cost to the police department so they can break even but not a fee so large that it would “bankrupt” motorists.

Commissioner Larsh said the court has no choice but to suspend a $1,351 fine for first offenders, which constitutes a $500 fine and $851 penalty assessment, if they can prove they were insured on the day they got a ticket.

“If they went out 30 days after a ticket and purchased insurance, we suspend $1,080,” he said. “Since they have it, we go and give them back some of the money. Some judges do not suspend it.”

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Larsh said the rationale for suspending the fines is that the expense can make paying for insurance impossible for some people. He also said the courts cannot simply fine an amount that will directly reimburse the police departments.

Rex Frazier, who heads policy research and special projects for Insurance Commissioner Chuck Quackenbush, said the state Legislature has not yet addressed the situation.

“Some people are becoming familiar with the reluctance of judges to impose the penalties,” Frazier said. “I haven’t heard much talk one way or another if there is going to be a legislative response to what the courts are doing.”

Regardless of what happens with the law, some cities have steadfastly refused to change their policies, no matter the cost.

“We feel the assets far outweigh the liability,” Tustin Police Lt. Christine George said. “Having insured motorists on the roadway is the direction we plan to continue traveling.”