AB 60 Driver Licenses Believed to Cause 2015 Bump in Insured Vehicles
Insurance Commissioner
According to a preliminary analysis by the
"Many hoped to see an increase in insurance after
Under AB 60, the
While the department believes the increase in insured automobiles can likely be attributed to AB 60, it is important to note there is an apples-to-oranges relationship between drivers licenses, registered vehicles, and insured vehicles. Every new AB 60 driver license would not be expected to yield a new insured vehicle because of the following:
* Californians do not need auto insurance to obtain a driver license (but they do need auto insurance to register a vehicle).
* Prior to AB 60, undocumented immigrants could register a vehicle with a Matricula Consular or an out-of-state driver license.
*
* Attempting to tie the number of insured vehicles directly to the number of driver licenses is not an accurate representation of the number of insured vehicles, as there are may be multiple drivers for one vehicle and the insurance follows the vehicle.
It is also possible that other factors, including the improving economy and lower gas prices, allowed more Californians to make installments payments and keep their auto insurance in force.
Media Notes:
* An
* More about AB 60: https://www.dmv.ca.gov/portal/dmv/detail/ab60.
* Every person registering a car must provide proof of financial responsibility (insurance) at the time of vehicle registration, but miss installment payments and allow their insurance to lapse.
* Registered Vehicles vs. Insured Vehicles 2013-2015.
The
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