Jones: Undocumented License Law in California May Have Led to UM Drop

December 5, 2016

A California law that provided driver’s licenses to those who could not submit proof of legal presence in the U.S. may have led to a decrease in the number of uninsured motorists in the state, according to a preliminary analysis by the California Department of Insurance.

The analysis showed that in 2015, the first year since the passage of AB 60, the number of insured vehicles rose by 200,000 more vehicles than would have been expected.

In the previous three years, the percentage of insured vehicles increased at the same rate as the number of registered vehicles, but the CDI analysis shows an unexpected increase in the number of insured vehicles in 2015.

Under AB 60, the California Department of Motor Vehicles can issue an original driver’s license to an applicant who lacks proof of legal presence in the U.S. and meets all other requirements.

The CDI noted that while it’s believed the increase is tied to AB 60, there are factors that could also cause the numbers now being seen, including factors like the improving economy and lower gas prices.

Topics California

Was this article valuable?

Here are more articles you may enjoy.

From This Issue

Insurance Journal Magazine December 5, 2016
December 5, 2016
Insurance Journal Magazine

Program Directory, Volume II