Opinion: California Overlooking Simple Change To Make Driving More Affordable

San Diego CA

15 December, 2021

1:53 PM

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By Ricardo F. Villa, Times of San Diego December 13, 2021 California drivers are struggling. California gas prices are at around $4.70 a gallon and now claim the title for highest in the country, over a dollar more than the national average, and the most expensive in our history. New car prices are up 12% over the past year or nearly $5,000 per car. Used car costs are up a dizzying 38% at the same time despite their typical role of being a more affordable option for drivers. And last month, California was rated the worst state for drivers in the country when including factors such as cost (maintenance, insurance, gas), driving quality (road conditions and traffic), safety (DUIs and seat belt use), and even weather. Add in rapid inflation that our country hasn't experienced in thirty years, and the onslaught of economic pain casts doubt on whether there is a financial recovery for most Californians. This is felt not just by drivers, but by small businesses in San Diego and across the state. I hear this increasingly from my members at the Chambers of Commerce who are desperate for a modicum of relief after nearly two years of extreme economic conditions. Just ask any construction or delivery company that relies on a fleet of trucks, vans, or cars, and they'll tell you they are now operating off razor thin margins. Elected officials are certainly feeling the pressure heading into election season. Turn on the TV or read the news, and you'll see one quote after another from politicians here and in DC expressing their concern about rising prices. But just like the glacial pace of moving goods through California ports, any action to relieve our pain has been slow moving. In fairness, these macro problems cannot be solved overnight, but there are certainly common sense, concrete steps that our public leaders can take to reduce the pain for drivers simply trying to commute to work, pick up their kids from school, or make a delivery. The first place to look is the low-hanging fruit of permitting car insurers to base premiums off driving ability. As it stands, 49 other states allow technologies to be used to evaluate whether someone is a safe driver, and therefore a less risky one, which can save that driver money. But because Proposition 103 was passed in 1988 — long before this technology was available — car insurance can still use factors like where the policyholder lives or whether they are married. This has little to do about whether someone is a good driver, which can lead to unfair outcomes for drivers, particularly drivers of color, who might otherwise be in a position to have more affordable car insurance. Notably, Californians by and large support this change. According to a Zogby poll from this fall, 80% of Californians said it's fair to base rates on how you drive, while 70% responded that they'd be willing to try an app that measures driving ability, especially if it presented the opportunity to save money on their car insurance. Such a change seems too obvious and too popular to pass up and it's one that the California Department of Insurance Commissioner Ricardo Lara is perfectly equipped to spearhead. The commissioner, who is in San Diego beginning this weekend for a major insurance conference, just recently accelerated his efforts to hold car insurers accountable over whether they have been honest in the amount they decide to refund driver premiums. He can continue making strides in getting money back into drivers and business' pockets by updating Prop. 103. To be sure, drivers won't see their bills go down overnight, but by putting current insurers on notice that the old ways of driving up rates won't be tolerated anymore sends a powerful signal that price increases will not become the status quo. Drivers have been struggling for months to pay extreme prices just for accessing transportation. California should start the process of providing real relief today. Ricardo F. Villa is Chair of the San Diego County Hispanic Chamber of Commerce. Times of San Diego is an independent online news site covering the San Diego metropolitan area. Our journalists report on politics, crime, business, sports, education, arts, the military and everyday life in San Diego. No subscription is required, and you can sign up for a free daily newsletter with a summary of the latest news.