Mandating Car Insurance Drives Up Cost

Re: “State Tries to Find Low-Cost Auto Insurance Solutions” [June 29].

The first solution is that the state should not be in the auto insurance business, or any other business competing with the private sector.

I believe the answer to low-cost auto insurance lies in the law that requires every driver to be insured.

The old “supply and demand” is certainly at work here. As long as the driving public is required to buy auto insurance, there is no incentive for the insurance industry to lower rates. The only competition within the auto insurance industry is how low to set the new high rates.

Let’s solve the problem by repealing the mandatory auto insurance law. When the driving public has the opportunity to “just say no” to auto insurance, I believe you will see rates drop.

Dennis Leffert

San Diego

It is ironic that an insurance industry representative claimed that the state’s low-cost auto insurance program is too restrictive and “seems a little pricey,” because it was insurance industry lobbyists who demanded the restrictions and a price that is $150 higher than was necessary for this “lifeline” insurance policy for low-income drivers.

The problem is not that the policy is substandard, it’s that nobody knows the program exists and insurance companies and agents want to keep it that way. People should call the hotline for this program--(800) 622-0954--and state and city leaders should aggressively market the low-cost insurance policy, because we cannot afford to have so many people driving without basic insurance.

Douglas Heller

Foundation for Taxpayer

and Consumer Rights

Santa Monica