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THE CURRENT AUTO INSURANCE SYSTEM:

On average, accident victims with medial bills and wage losses exceeding
$100,000 recoup just nine percent of their losses from auto insurance.
(Source: The RAND Corporation) 
      
In California, lawyers pocket 20 cents of every premium dollar. (Source:
California Department of Insurance) 
       
Californians are forced to spend more than $2.5 billion a year on auto
accident lawyers. (Source: California Department of Insurance) 
       
Nationwide, only 35 of every 100 people in auto accidents claim bodily
injury. In California, it's 65 out of every 100. And in Los Angeles, that
number skyrockets to 99 bodily injury claims per 100 damage-causing
accidents. (Source: Insurance Research Council) 

False or inflated injury claims add a s much as $250 a year to the cost of
the average automobile policy in California. A total of $2.8 to $3.5
billion is pocketed by unscrupulous claimants and their lawyers every
year. (Source: The RAND Corporation) 

THE INSURANCE SYSTEM UNDER NO-FRAUD (PURE NO-FAULT) AUTO INSURANCE

No Fraud auto insurance will save California's cities and counties more
than $100 million in reduced legal costs and lowered public health care
costs. (Source: California Legislative Analyst) 

According to The RAND Corporation, the typical driver who buys Proposition 200's
standard $1 million policy would save 25 percent on the cost of auto
insurance. Opting for a $50,000 policy would save this driver 34 percent.
For those who now purchase minimum coverage, the savings would range from
39 percent for the $1 million policy to 53 percent for a $50,000 policy -
the minimum coverage required. 
       
Proposition 103, the insurance rate regulation initiative passed in 1988,
guarantees that the cost savings resulting from No-Fraud insurance will be
passed on to consumers. 
       
Any pedestrian or bicyclist hit by a car would automatically be covered
for up to $1 millionin medical expenses and $250,000 in pain and
suffering. 

Drivers who do not buy insurance would get no benefits. However, every
child under 18 would be covered would be covered under Proposition 200 for
at least $50,000 no matter what. 
   
Car owners would be required to show proof of insurance within 30 days or
pay interest atthe rate of 24 percent per year. 

Drivers with bad driving records still would be penalized with higher
insurance premiums and traffic tickets. Proposition 200 would prohibit
insurance companies from raising the rates of motorists who make claims
for accidents that were not their fault. 

SEAN GARRETT
THE ALLIANCE TO REVITALIZE CALIFORNIA