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| | AB 60 Now In Effect Giving Drivers' Licenses To Illegals. Positive Effect Hoped For By Insurers And Policy Holders.
By Lonce LaMon - January 4, 2015
Just on Friday, January 2nd 2015, AB 60 went into effect. Now, because of this new law, the California Department of Motor Vehicles predicts it will see about 1.4 million illegal immigrants seeking drivers’ licenses within the next three years.
The political maelstrom over illegal immigrants having drivers’ licenses has gone on for over three decades. Now, nine other states along with California allow illegal aliens to apply for special licenses which are not recognized as a valid form of federal identification. This makes them unusable for boarding an airplane, for example. They are distinguished by a unique marking.
However, each applicant must submit a thumbprint, pass an eye exam, a written exam, and a physical driving test. In California, applicants must show proof that they reside in California.
Along with the opposing political arguments that this new privilege for illegals both encourages their illegal immigration actions while it brings them out of the shadows and moves them towards being unmarginalized members of society, the hope has been that the law will be both positive for the insurance industry writing auto insurance and for its policy holders.
The hope is that illegals with drivers’ licenses will be better able to buy auto insurance. Unlicensed driver insurance is cost prohibitive for most illegals, as it kicks the insurance into assigned risk levels. With more drivers holding insurance, the cost put upon insurers and insureds to pick up the slack for the uninsured involved in accidents, will be abated. It will make the average cost for auto insurance cheaper for all. That’s the theory: that the cost for the average auto insurance policy will go down.
The hopeful prediction for the future is that it will help the economy by making transportation cheaper. Now that the Nation and California have cheaper gasoline prices (around an average in California of $2.50 per gallon on January 1, 2015), cheaper auto insurance will add to this positive new price drop for transportation.
The California DMW has beefed up operations in anticipation of AB 60 for more than a year. Governor Jerry Brown signed the bill over a year ago in late 2013. Four new offices have been opened and 900 additional employees hired. $141 million has been budgeted to handle the influx of applications. Appointments to obtain drivers’ licenses can now be made 90 days in advance rather than just 45 days in advance.
Now time will certainly tell how AB 60 is going to affect auto claims and auto policy prices.
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