California’s elected officials are considering one more tax on Californians and businesses. Senate Bill 1107 is not a tax as defined by law, but it has a similar effect. This bill will make driving a car in California even more expensive.
Industry experts estimate that drivers will pay $80 to $400 dollars more than now. Worse yet, the legislation’s ill effects will almost exclusively be shouldered by lower income drivers and small businesses in the Golden State.
The bill will double the minimum amount of liability coverage drivers are mandated to buy and drastically change how underinsured motorist coverage works. These proposed changes to car insurance will hurt all Californians, but especially lower-income drivers, at a time when they are already struggling to keep up with the highest inflation in 40 years.
Every dollar counts, especially when your budget doesn’t allow for sudden increases. I recall my less-than-prosperous days as a 21-year-old worker. I was paid $2- an hour and my car insurance was $4 a week.
Adjusting for inflation, my wages were slightly above what minimum wage workers earn today. Had my insurance gone up substantially, like SB 1107 threatens to do, it would have severely impacted my cost of living and tight budget.
Supporters of this bill say they are trying to help drivers by making more coverage available so there is a larger pot of money for settlement after a car crash. The reality is these changes are completely unnecessary. Drivers are...
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