Small businesses also pay millions more. Under Proposition 30, if your insurer refuses to pay an unreasonable settlement demand made against you, it risks a separate multi-million dollar lawsuit. Personal injury lawyers can file thousands of frivolous lawsuits aimed at you and your insurer. Drunk drivers can sue and collect punitive damages that current law prevents. Lawbreakers who drive without insurance can sue for huge punitive damages.
Taxpayers pay tens of millions more in court costs for frivolous lawsuits.
Insurance fraud skyrockets. During the 1980s, the California Supreme Court allowed second lawsuits if an inflated settlement demand was not met. According to California Judicial Council records, auto injury lawsuits filed every year almost doubled. Settlements from insurers zoomed. As a result, consumer's insurance rates skyrocketed.