Argument in Favor of Proposition 200

Proposition 200, the No Fraud Auto Insurance Initiative, removes lawyers and lawsuits from most auto accident cases. Along with Proposition 201 and Proposition 202, it will bring unscrupulous personal injury lawyers and runaway lawsuits under control. These lawsuits cost consumers too much money, hurt our economy and cost all of us jobs.

Proposition 200 gives Californians better auto insurance at lower cost. RAND, the independent think tank, analyzed Proposition 200. They found that California drivers will be able to buy $1 million in coverage for 25% less than what they typically pay today.

Why? Because every year $2.5 billion out of our auto insurance premiums go to lawyers. That's more money than goes to doctors and hospitals combined.

RAND also says we pay as much as $2.8 billion extra every year because of phony claims and criminals staging accidents to collect insurance. You've seen the bumper stickers saying, ``Hit me. I need the money.'' We pay for all that fraud.

In 1992, across America, injury claims were filed in 29% of car accidents. In California, injury claims were filed in 67% of car accidents. Why? Because we're swamped with phony claims.

Who benefits? Not injured drivers. To collect for an injury you usually have to hire a lawyer. If you were hit by an uninsured motorist or a hit and run driver, you're out of luck. They cause close to half of California's car accidents.

If you are hit by someone with the legal minimum insurance, you'll only collect $15,000, and your lawyer takes $5,000 of that.

RAND concluded that if you're in a serious accident (losses over $100,000), suing today will get you, on average, just 9% of your losses.

Proposition 200 will save you a bundle. Here's how:

• Your own auto insurance company will pay your medical bills, lost wages and rehabilitation expenses just as other insurance does. The standard policy will give you $1 million in coverage, but you can buy more or less if you want.
• Insurance companies will have to pay you within 30 days. If they're late, you'll get 24% interest. If they don't pay you for a legitimate claim, a court can order them to pay you even more.
• Uninsured drivers will no longer be a problem. You won't have to pay extra because of them. If they don't have insurance, they won't get paid. Most importantly, uninsured drivers won't be able to sue you, which they can today.
• Even though everyone injured in an auto accident will be paid by their own insurer, fault will still be determined. If an accident was not your fault, Proposition 200 prohibits your insurance company from raising your rates.
• Pedestrians and bicyclists injured by automobiles will automatically be covered up to $1.25 million. And every child injured in a car accident will be covered.
• Drunk drivers can still be sued.

JENNIFER FRANK
Director, Voter Revolt to Cut Insurance Rates

ANDREW TOBIAS
Winner, Consumer Federation of America Media Service Award

JIM CONRAN
Executive Director, Consumers First