I would like to see a blended system. This article here is right. 28% of drivers in California are driving illegally, without insurance. The other 72% pick up the entire tab basically. So basically, if everybody averaged out owing $1000 each, the honest people on average are paying $1388 to subsidize those who don't have insurance.
If basic insurance was taken care of at the pump, then those who drive illegally are paying their share. More protection than the bare minimum, would be bought from the insurance companies.
There could even be a rebate program, for those who are heavily covered, and have an umblemished record.
The minute we start empowering the government to dictate to insurance business "what we'd like to see", we can be sure we're not going to get what we want. We will get higher rates, more bureaucracy, and the 28% uninsured will remain uninsured because it's racist or contrary to Party interests to ask them to get insurance. Why can't people leave business well enough alone? The only reform we need is to stop issuing licenses, registrations, renewals and titles without proof of insurance. As usual, government fails entirely to enforce the laws it has, and tells a bunch of lies to get us to pass new laws.